- Analytics
- News and Tools
- Market News
- Stock market indices will remain resilient if two conditions are met – Natixis
Stock market indices will remain resilient if two conditions are met – Natixis
Investors are questioning the relevance of the current level of share prices. Economists at Natixis highlight the two conditions which, if met, imply that – US and Eurozone – equity markets are not overvalued.
There are two conditions that, if met, imply that current share prices are not overvalued
The first condition is that real long-term interest rates (currently 1% in the US and 0.5% in the Eurozone) do not rise significantly. This condition is difficult to meet: the increase in public and private investment linked to the energy transition, water management and industrial reshoring is likely to lead to a shortage of savings and therefore a rise in real long-term interest rates.
The second condition, particularly in the US, is that artificial intelligence generates additional productivity gains. Opinions differ on this question, but it can only be said that the internet has been associated with a marked decline in productivity gains, whereas the opposite was initially believed (in the late 1990s).
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
