Surprise: Record number believe bonds overvalued

14-Apr (Financial Times) — Bubble bubble toil and trouble.

A rising number of investors believe bonds and equities are overvalued, with fears climbing that a bubble could be forming in the latter, according to a Bank of America Merrill Lynch fund manager survey released on Tuesday.

The survey found that 84 per cent of fund managers believe bonds are overvalued, the highest proportion on record since the brokerage began polling its clients, Joel Lewin writes in London. More than half of investors believed both equities and bonds were over-extended.

The growing pool of eurozone bonds trading with a negative yield — some €1.5tn, or a quarter of eurozone sovereign debt — is finally beginning to strike investor sentiment.

[source]

PG View: I wonder if nearly a decade of ZIRP and QE have anything at all to do with the simultaneous record overvaluation of stocks and bonds? Now if only the prudent investor could find an alternative asset that might be considered undervalued right now. . .

I have a rec, but you’ll have to give us a call!