Sarah Breeden, deputy governor for financial stability at the Bank of England, has warned that international equity markets are too high and will fall, according to a BBC interview. She stated that macroeconomic risks were not fully priced into equity markets and that asset prices are at all-time highs. Despite this, many developed markets are still trading near record highs. Breeden also highlighted concerns about rising private credit defaults and a potential macroeconomic shock, confidence in private credit, and potential changes to AI and other risky valuations. Despite these warnings, many market participants remain optimistic about where equities are headed, despite record valuations and ongoing uncertainty over the Iran war.