The European Central Bank published their latest review of financial stability (the aptly named Financial Stability Review (FSR)) overnight.
In amongst the waffle valuable information was this:
- US equity prices look stretched and may be subject to further adjustment.
- Furthermore, compressed corporate bond spreads in some advanced economies leave room for rapid corrections
I guess after the declines we've had in US (and global) stocks the sting has been taken out of the comment. Or maybe not?
The May 2019 ECB FSR is here (link)
