Risky assets such as equities are not yet in bubble territory, Goldman Sachs Chief Global Equity Strategist Peter Oppenheimer said Monday.
Talking to CNBC Europe’s “Squawk Box” about the risk of asset-price bubbles, Oppenheimer said an inevitable consequence of a having interest rates near zero was that many investors across the world were pushed up the “risk curve.”
“That could result in ultimately risky assets becoming overvalued like probably other asset classes,” he said. “It doesn’t look clear to me that risky assets like equity markets are yet in that bubbly territory.”
Fuelled by a 1 trillion euro ($1.08 trillion) asset-purchase program from the European Central Bank, European stocks markets have soared this year, with the pan-European Euro Stoxx 600 Index up some 17 percent, while government bond yields in many parts of the euro zone have hit record lows.
In the U.S., the blue-chip Dow Jones stock index and broader S&P 500 have seen record highs this year, helped by growing optimism about the outlook for the U.S. economy. Last week, the tech-heavy Nasdaq hit a 15-year peak.
