'Sensible' was probably a French/English typo, I realize.As interest rates continue its downward trend, equity valuation gets increasingly sensible to a tiny bounce back rising rates.
Yeah, equities are very sensitive to interest rates. The prices are inflated by low interest rates. Low interest rates have increased prices on everything -- stocks, bonds, real estate. Therefore, we can probably expect to see lower returns in all of these going forward, especially if interest rates rise.
Many people believe that the central banks would not dare raise interest rates, because it would likely cause real estate and stocks to crash. Therefore you might as well buy stocks because it seems very unlikely that the central bank will ever raise rates.
I think this is why poor economic news has generally been good for the stock market. Poor economic or labour data --> reduce probably of rate hikes