Paris: Executive-level MBA presentation and debate

Goldman Sachs strategists warned recently that a prolonged bull market across stocks, bonds and credit has left a measure of average valuation at the highest since 1900: in the past, equities, bonds and credit have been similarly expensive at the same time, only in the Roaring ’20s and the Golden ’50s...Therefore, according to the Bank’s strategists, at some point, this may translate into pain for investors: “All good things must come to an end” and “there will be a bear market, eventually”. In plain words, today’s markets’ valuation may be the reflection of a massive financial “bubble” …

Indeed, in recent years, the supply and demand picture has been heavily distorted, more recently, sceptics have been cast aside and a US red-hot stock market, in particular, has continued its ascent. The presentation will deal with the rationality behind what seems to be once again an amazing disconnection between markets and reality. It questions, like in 2008, the standard Efficient Market Hypothesis, E.M.H. and the “axiom” that market valuations are translations of the so-called “fundamentals”, macro-economic indicators, corporate profits, etc. Ultimately, beyond academic debates, all leaders should pay a very careful attention to these extreme markets valuations and future potential developments…