In a new poll by the
These were the most pessimistic results since
He also warned: "The broad perception that valuations are now at extreme levels indicates that market values are more than usually vulnerable to rapid and significant change."
At the start of the year, only 40 per cent of CFA members said that developed market stocks were overvalued. But that has now risen to 67 per cent - despite only a 3.7 per cent rise in the FTSE All-World Developed index in the year to date.
Professional investors who think stocks are still undervalued and offer good value account for only 10 per cent of respondents, down from almost 30 per cent at the start of the year.
A portfolio manager at a large Swiss fund company, speaking on condition of anonymity, added: "I can understand the concerns. The S&P is near all term highs, there are $10tn of negative-yielding bonds, and even the
More than 80 per cent of investors responding to the CFA's poll said government bonds were overpriced, an increase of 15 percentage points since the beginning of the year. Similarly, the number of respondents saying corporate bonds were overvalued rose to its highest level in three years.
However, Xavier Baraton, chief investment officer for fixed Income in
His views are supported by fund inflow figures from Morningstar, the data provider. Since the start of the year, fixed income funds in
Morningstar blamed the outflows from equity funds on a "global flight to safety" following the
Mr Saint-Georges at Carmignac added: "There are many risks, not just Brexit and the US elections, but the Italian referendum in December and German and French elections next year.
"These could be important if populist parties with an anti-
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