The market just got even more expensive...

The market just got even more expensive...

Equity markets were blissfully floating for so many years on a low vol magic carpet. That made valuations optically attractive. Even though they got expensive.

Now, volatility-adjusted valuations make the market ...hey presto...even more expensive in what seems like a flash of a sleight of hand.

It will take some time for things to settle down in both equity and bond markets as they are both so rich. They are losing that magic fast.