Certainly the 1970s and early 1980s – a period which deeply affected financial markets for a very long time – were themselves unusual and not a good benchmark for judging pricing. Yet notwithstanding this evidence, experienced hands almost invariably have an uneasy feeling about developments.
In part, that unease reflects a conviction that the business cycle (and the cycle of greed and fear in markets) has not gone away. But it also reflects a recognition that behavioural changes are occurring, in response to the environment we face, which could elevate risks or create new ones.