Office real estate valuations have fallen so dramatically (down 80% from 2019 levels in some cases, though recovering 160% from recent lows) that most of the downside is priced in; further deterioration will be limited, and value is emerging in office REITs at current prices.

Corporate credit spreads (the yield premium over Treasuries) are near historically tight levels, in the 90th percentile of tightness based on comparisons to 1997-present data, making corporate bonds poor value relative to alternatives like mortgages that offer similar yields but are cheaper (less rich).

The stock market has had the best year-to-date performance since 1997-1998 due to a combination of strong earnings, falling inflation expectations, and low unemployment, but much of this rally is built on rising asset prices (wealth effect) and federal stimulus rather than underlying economic strength.