Valuations are high, but below dotcom levels

The recent surge in stock market indices, including Wall Street's S&P 500, the Nasdaq Composite, Japan's Nikkei 225, Germany's Dax, and France's Cac 40, hitting all-time highs signifies a broader trend of optimism regarding the global economy and corporate performance. This buoyancy is fueled by improving corporate earnings and a belief among investors that central banks have effectively managed inflation without jeopardizing economic growth. Analysts are interpreting this as a "risk reset," indicating a reassessment of market dynamics and a willingness to embrace higher levels of investment risk in pursuit of potentially greater returns.