To be sure, market participants reckon debt flows will remain strong thanks to limited inflation, low returns on savings products and aging populations. What’s more, inflows into either asset class aren’t mutually exclusive thanks to a pool of excess savings.
But there still may be solace for stock bulls that have been flustered by the secular reduction to the asset class over the past decade.
"There’s not going to be a major bond-for-equity shift, and bond yields would need to reprice to a much higher level for that to happen," Griffiths said. "However, conditions for higher relative equity allocations haven’t been this good for a long while."
This article was provided by Bloomberg News.