Since the coronavirus-induced market crash last year, equity markets have staged a remarkable recovery. As with previous global recessions, monetary and fiscal policies have become expansionary.

Unprecedented fiscal support has buffered economic activity, but falling government revenues have sharply widened fiscal deficits in several countries. The result of all these actions? Equities, in SA and across the world, are expensive. This is evident when you compare the rapid increase in equity prices over the past 12 months with other periods in history...

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