How high can equity market indices go?

The recent rise in equity market indices is impressive, leading some investors to wonder whether a downward correction awaits . But when we see that: Corporate profit margins have hit highs and are holding up in the face of rising production costs; Long-term interest rates are very low and will not rise much, as monetary policies will remain expansionary; There is still abundant liquidity to be invested in equities (the portfolio rebalancing that follows vigorous money creation is yet to run its course), we understand why equity market indices will continue to rise in both the United States and the euro zone.