This is exchanges of Goldman Sachs where we discuss developments currently shaping markets, industries, and the global economy.

I'm Jake Stewart, global head of corporate communications here at the firm.

Today we're going to talk about the outlook for the equity markets and an environment of

rising interest rates and potentially higher taxes.

To do that, we're joined by Brett Nelson,

head of tactical asset allocation

for the Investment Strategy Group,

which is part of our Consumer and Wealth Division

here at Goldman Sachs.

Brett will talk about his views on the current environment for stocks.

Brett, welcome to the program.

Thanks for having me.

So Brett, as the economy continues to get a little stronger,

interest rates have been rising, and there have been some signs

that the stock market might be entering bubble territory.

Have we reached a tipping point that might be problematic for stocks?

Well, we're definitely not of the view

that the market is in a bubble,

although we certainly acknowledge

that there are pockets of excess

in various parts of the market.

But at least in our analysis,

...