Bond funds start to look a little expensive

With bond prices still near record highs, some managers are counselling a cautious return to equities. Bond funds have attracted investor support as a result of the equity bear market but with bond prices high, new investors may be getting in at the top of the market. John Cornes, manager of the Edinburgh Monthly Income Portfolio, said investors have become disenchanted with equities because of the three bad years of performance and many are worried about further weakness in the stock market. 'I think things have turned, that circumstances will improve and equities will rise but inves...