What happens if equities no longer benefit from the abundance of liquidity?

The liquidity created by central banks and held by banks and non-bank economic agents continues to grow rapidly. Portfolio rebalancing implies that excess liquidity is invested in other asset classes. If investors believe that equities have become expensive, they will switch to other asset classes. In this configuration, the stabilisation of share prices therefore implies in particular: An acceleration in the rise in real estate prices; A fall in long-term interest rates; which is what we have seen in the recent period.