One of the more vocal debates of the past several years is whether the bubble in bonds is greater than that in stocks, or vice versa. While it will hardly resolve the ideological debate, in its latest “Risk Premium” report, SocGen presents a matrix showing the relative cheapness, or rather lack thereof, of various asset classes and what returns one may expect.
The conclusion, which will hardly come as a surprise to anyone who has observed the past 7 years and $13 trillion in central bank liquidity injections, is that everything is overvalued.