Actions: perhaps excessive exuberance

The health crisis has not dampened the euphoria of investors and hardly a week goes by without new records on the equity markets. In Paris, the CAC 40 index has returned to levels unknown since February 2000, just before the bursting of the internet bubble, and the Frankfurt Stock Exchange is at its highest in its history. The trend is even more marked on Wall Street, where stock prices, battered at the start of the pandemic, rebounded twice as fast as in Europe: the flagship S&P 500 index recorded its largest increase in twelve months since 1936! IPOs are at their highest for twenty years, according to a study by EY.

"The rise in equities is maintained by the monetary policies of central banks which keep interest rates very low and in this way flood the markets with liquidity

," explains William De Vijlder, chief economist at BNP Paribas.

Investors can no longer invest in bond assets

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