The equity risk premium has reached record levels and we are yet to see their end; the risk free rate served as a barometer so far but may be the disassociation is gaining traction as the market is primed to perceive that equity risk premium can go higher and simultaneously the market believes that the index is not over-valued.



This could be a clear case where money is getting (more than) allocated into a sector where trade and transaction allows more and more risk to be increased with no stops. Central banks do not have any way to control this, virtually it is moving on its own momentum.



