Elevation Sickness

May 29, 2019

Last November, the Federal Reserve released the first of what are meant to be twice-yearly reports that examine the nation’s overall financial stability. In the report, the central bank highlighted issues like uncertainty around Brexit, and trouble in China and other emerging markets that could destabilize U.S. financial systems. While the report concluded that these vulnerabilities are at a “moderate” level, they remain heightened by elevated asset prices. Though the report acknowledges that stock prices are high “by some measures,” it may be severely understating how overvalued global assets have become.

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