Bloomberg Intelligence's 'Equity Market Minute' 2/3/2021

Gina Martin Adams discusses the current state of the equity market, addressing fears of a bubble due to speculative retail trading. She examines the equity risk premium, noting it remains above the long-term average, indicating risk intolerance among investors. Historical comparisons show that current conditions differ from past bubbles. US households, major equity holders, have not significantly increased their positions, aligning with market value growth. For a bubble to emerge, a shift in risk premium and increased equity investments by households would be expected.

What conditions characterized equity market bubbles in the 1980s and 1990s compared to the current market?

What should happen to the equity risk premium to indicate a stronger risk embrace among investors?