Since the COVID-19 pandemic began, equity markets have experienced extreme volatility, while at the same time, many company valuations have reached peak levels despite record unemployment rates. Particularly in the US, this has caused a notable divergence between the stock market and the real economy. Investors have been left wondering whether the stock market is too optimistic and detached from the economic damage that has occurred.

In the latest episode of The Flip Side’s Navigating the virus economy miniseries highlighting the effect of COVID-19 on businesses and markets, Barclays Head of Research Jeff Meli and special guest economist Professor Robert Shiller debate whether equity markets are overvalued and what role long-term investing should play during a crisis.