Everwhere you look today assets look expensive.
Stocks are above long-term average valuations.
Bond yields are at crazily low levels.
Cap rates on real estate are creeping up again.
The cause of all of this is Central Bank interest rate policies.
According to Professor Damadoran, how inappropriately low you think rates are really depends on how old you are. There is an entire generation of adults that know nothing but low interest rates.
Here he is discussing interest rates and asset valuation:
