The authors also observe that climate change is putting pressure on the environment’s ability to support and supply food, water, health and wellbeing, and note its potentially threatening consequences for the economy, security and civil unrest. The challenge has staggering dimensions.
Such patterns are what one would expect based on the logic I have just discussed. Another way to make a similar point is to note that as borrowing costs have fallen, Federal Reserve staff estimates of the expected return on the stock market (using a model based on analysts’ earnings expectations) remain high by historic standards.