It is difficult to judge the market's appetite for risk simply on the basis of the equity markets' price levels, as determining what constitutes "too high" or "too low" a price is challenging. One can compare a market's price to its earnings or its book value, but earnings are a moving target and are subject to large non-recurring costs (even in the aggregate) while the efficiency with which assets and leverage are employed also changes.
Thanks for the detailed analysis. -
1 hour ago