Focus on bonds leaves equities in the shade

ON UK INCOME

Schroders' Nick Kirrage and Kevin Murphy say investors' unwillingness to look at equities means there are plenty of compelling opportunities in the market

Many investors are obsessed with macroeconomics. The market seems driven by daily economic data. The result is many investors have focused on the perceived safety of bonds. But, as an asset class that has been in a 30-year bull market available at ever-decreasing yields, it is difficult to argue bonds look anything but expensive on an absolute return basis. But the focus on bonds has left equities in the shade. The unwillingness of investors to look at equities means there are many examples of compelling value in the market. While robust corporate earnings and weak macro headwinds con...