The equity market "bubble" will continue to inflate

The stock market index has risen by 26 .9 % year-on-year (S&P) or 3 4 .9 % year-on-year (Nasdaq) in the United States; it has risen by 1 2. 4% year-on-year (Euro Stoxx) in the euro zone. Stock market valuations are very high, particularly for the 'Magnificent Seven' in the United States (Meta, Alphabet, Tesla, Microsoft, Apple, Nvidia, Amazon) and for the few European companies whose share prices have risen sharply (Novo Nordisk, Rolls Royce, Stellantis, Ferrari, Hermès, Unicredit, BBVA). We seek to determine what kind of shock could 'burst' this bubble. Probably, this would be the case: If the rate cuts by the Federal Reserve and the ECB came to a premature halt, if the central banks underestimated future inflation; If the geopolitical situation deteriorated further (extension of the conflict in Ukraine, etc.). Usually, bubbles are corrected by a rise in interest rates; if interest rates fall as expected in financial markets, the bubbles will become even bigger.