The Importance of Equity Valuations in the Market in 2023

Valuations don't matter until people deem themselves fully invested. Part of that is just because valuations really matter in a world where you have trade offs. If you are having to choose between buying a bond and buying an equity, then you actually care about the valuationYou're paying. But if you're way underweight equities, maybe you don't actually care. You just have to get invested,. which can happen either because you're underweight or because you're in a bubble.