IMF warns high corporate valuations pose risk to financial stability due to over-optimism.
The IMF's director of monetary and capital markets, Tobias Adrian, warns that high corporate valuations could pose a significant risk to financial stability. Market optimism has stretched company valuations to a point where they may be vulnerable to an economic shock, as they become untethered from fundamentals. This comes as financial markets have experienced growth this year, driven by falling inflation and hopes for interest rate cuts.
April 17, 2024
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