The International Monetary Fund considers listed securities to be overvalued. He also sees vulnerabilities in funds and warns about cryptocurrencies.
Stock prices are out of step with the fundamental value of listed companies. This is one of the warnings issued by the International Monetary Fund (IMF) in its financial stability report, published Tuesday. “Assets appear overvalued in certain market segments“, underlines the IMF.
“Stock prices remain considerably out of step with fundamentals.”
“Despite recent market turmoil, overall, share prices rose further, driven by accommodative monetary policies and strong earnings, “he adds.” However, stock prices remain significantly out of step with fundamentals-based valuations in most markets. “
Risks in cryptocurrencies
The IMF also points to “vulnerabilities” which remain present in the investment funds sector. According to him, leaders “urgently need to address these vulnerabilities by strengthening prudential supervision and regulation“. He also calls on them to” urgently strengthen the information architecture on the global climate “to promote the development of sustainable funds and mitigate the risks associated with climate transition.
“The risks to investors are particularly high in crypto-assets.”
The report also warns that cryptocurrencies can be sources of risk. “The risks for investors are particularly high in crypto-assets and decentralized finance,” says the IMF, which believes that “stablecoins” (cryptocurrencies linked to a classic currency) “may be victims of speculative attacks in case of doubt about the amount of their reserves “.