Risky assets are not significantly overvalued in our view

While the S&P 500 is now above its pre-pandemic level, and US investment-grade corporate bond yields are even lower, we do not think that the valuations of “risky” assets in the US or elsewhere are unsustainably high. In fact, we expect equities and corporate bonds to rally further and many developed market (DM) currencies to make further ground against the US dollar between now and end-2021.
Jonas Goltermann Senior Markets Economist
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