There has been a sharp increase in investor belief that bond markets are overvalued, sparking fresh fears of a price bubble just weeks after the US interest rate rise.
The latest valuations index from the Chartered Financial Accountant (CFA) Society showed that investors who considered government bonds to be overvalued rose to 79% in December following a marked decline to just 9% in the third quarter. Those who believed corporate bonds were overpriced increased from 7% to 73%. The association said this suggested that the belief the bond bubble may be easing was only temporary. The CFA surveyed 247 investors and analysts between 2 December and 15 December. Investors also increasingly think that developed equities are overvalued. More than half of ...
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