Where to Invest When All Assets are Expensive

Think bonds are pricey and equities are at the top of their valuations? Schroder's Marcus Brookes outlines where value hunters can find options in an expensive market

Emma Wall 03 June, 2014 | 11:17
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Investors are being priced out of the market – across all assets. For the past year, the City has been calling the bottom on the bond market. Yet, despite predictions that bond yields could not fall any further, US government bonds have done just that. When yields fall, prices rise; meaning bonds are now more expensive than six months ago.

Equities are looking just as pricey, as Tom Becket, chief investment officer of Psigma said last week, after one of the most powerful equity bull markets in the history of man, investors need to be aware that the ripe, low-hanging fruit have all been picked.

“The conflict that we see as fund managers is that most of the assets are now looking fully priced which means it is difficult for us to find returns,” said Marcus Brookes, multi-asset manager at Schroders.

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Emma Wall  Emma Wall is Editor for Morningstar.co.uk

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