How high can European stock market indices rise?

S everal ideas offer a guide : As long-term interest rates are permanently lower than growth rates, share prices (we look at the Euro Stoxx and the CAC) are not limited on the upside by fundamental equity values; The prospect of a sustained economic recovery is leading to both expectations of rapid earnings growth and a decline in risk aversion; So there is no reason to not use the portfolio rebalancing model: at equilibrium, stock market indices must increase as much as the money supply (for non-bank economic agents). This points to upside potential in stock market indices, from their April 2021 level, of: 5% for the Euro Stoxx; 16% for the CAC.