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- Stock-market valuations, by one measure, have hit highs surpassed only a few times in history.
- Equities look historically high relative to government bonds, according to PIMCO and GAM Asset Management.
- The market's upbeat expectations on future corporate earnings may "face disappointment," says PIMCO.
After a rally that defied high interest rates and recession calls, stock valuations are now edging toward levels seen before some of the greatest market meltdowns in history – by one measure at least.
A time-tested way of assessing whether equities are fairly valued is by comparing them with government bonds, considered one of the safest forms of investment.