And with benchmark government yields near historic lows, the total returns on offer in the world of credit are also capped.

“Yields are spectacularly low,” said David Jane, multi-asset fund manager at Premier Miton. “The thing to buy ultimately is equities not necessarily credit from an upside point of view.”

ut given the unprecedented pandemic-induced collapse in investment and consumption, anyone with a bullish view on stocks is simply being over-optimistic, according to Thozet at Carmignac.

“In this context of unprecedented crisis we see the equity markets at 15% off the historic highs,” he said. “There is no certainty as to the evolution of the pandemic and the magnitude of the economic shock as such. This calls for caution overall, especially since the consensus of equity analysts tends to imply a V-shaped recovery.”

--With assistance from Cecile Gutscher.

This article was provided by Bloomberg News.

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