With 'risk free' bonds yielding nearly 5%, the current PE ratios can't be justified. The growth assumptions are insane. I can rationalize the AI valuations to a some degree, the value of AI if quantified by companies will result in significantly higher unemployment in the short-medium term.
I think the consensus view to put all savings into index funds has resulted in forced inflow into equities that ignore valuations and inflate the market.
Will the bubble pop, not necessarily. Will equities return 20% p.a. or even 10% annually for the next decade, not unless its at the expense of something else.
