This analysis highlights that too-low-for-too-long interest rates may spur asset price bubbles and may also stimulate short-termism among investors, i.e. by favouring companies that offer cash-like returns at the expenses of companies that focus on longer-term investment projects.
In this respect, let me just observe that portfolio rebalancing that would encourage a higher degree of risk taking is one of the intended channels of transmission of non-standard monetary policies and that currently there are no indications of a generalised overvaluation of financial or real assets in advanced countries. Should excessive risks emerge, targeted macroprudential policies can be used as appropriate.