Core Insights - Historically elevated prices in equities, corporate bonds, housing, and leveraged loan markets may indicate a potential significant pullback in valuations [1] - Federal Reserve Governor Lisa Cook suggests that while a drop in valuations is possible, it is unlikely to lead to a downward spiral for the entire financial system [1] Market Analysis - The current high prices across various asset classes, including equities and corporate bonds, raise concerns about future valuation corrections [1] - The leveraged loan market and housing prices are also highlighted as areas of concern regarding potential valuation adjustments [1]