From skirt lengths, to magazine covers to public protests and the rise of ant-establishment voting, signals are everywhere. And, as investors, we need to pay attention to them. Which is why the imminent sale of the long-held Soul Pattinson building in Sydney’s Pitt Street Mall caught our eye. To us, it’s yet another signal that asset prices are over-stretched. We know low interest rates have corrupted the perception of risk and consequently pushed asset prices up. This of course has been the central banks’ aim – synthetically producing a wealth effect that might spur spending and investment. With US 10-year bond rates below the levels of the 1930s Great Depression, 30 per cent of global sovereign bonds at negative yields and 80 per cent below 1 per cent, investors are bidding up assets in the pursuit of yield, believing these low rates are the ‘new normal’. But this is anything but normal!