Has QE driven up global share prices to artificially high level?

QE has helped drive equities and bonds beyond fair value - but what will the future hold after the Fed raises rates?

Traditionally, portfolio risk was 'controlled' through allocating to equities and bonds. The idea is both will rise over time, but when equities are falling in value, bonds are rising and vice-versa. The non-correlated nature of the returns reduces portfolio risk. This is all well and good in normal times, however, with interest rates at all-time lows and trillions of dollars in quantitative easing being pumped into the global financial system, we are witnessing a cocktail of ingredients that requires a different thinking to control portfolio risk. QE has helped drive equities and bon...