You say investors have been "artificially incentivized" to take risks, which implies interest rates are artificially low. But what evidence is there that's in fact the case? We've had ultra low rates for years now, and people have been making that same argument the whole time, yet neither growth nor inflation are abnormally high, indeed, the usual observation is they are both surprisingly low. Are you sure you're not just influenced by anchoring bias when it comes to what interest rates 'should' be? Similarly, your comment that equities markets are factoring in "nothing but blue skies ahead", perhaps overlooks the possibility that very low risk-free returns are what lies ahead. If your real risk-free return is all but zero, equity PEs can theoretically go to infinity. And if you look at the ERP and earnings yield, they are both in line with post-GFC averages. There are still marginal dollars that are seeking a return above zero, and while equities offer even a little bit of growth, that makes them the tallest, and most attractive, dwarf. In other words, ultra-low inflation together with modest economic growth, means close to zero bond yields and elevated equity valuations can comfortably co-exist. By the way, you also commented that managers should avoid owning overly indebted companies: when was it ever not thus?