CFA: Investors are struggling to find value in markets

‘Record’ number consider corporate bonds overvalued

Investors are increasingly seeing little value across markets, with the majority perceiving corporate and government bonds as well as developed market equities as overpriced, according to research from the CFA UK.

The CFA's Q2 2017 Valuations Index survey, which measures investors' perceptions of the values of bonds, equities and gold, found that a "record" 84% of industry respondents now believe corporate bonds are overvalued, up from 69% at the same time last year. According to the CFA this is likely to reflect a decline in corporate bond yields from the first quarter of 2017, from 1.66% on 8 February 2017 to 1.56% on 20 April 2017. Similarly, government bonds are also seen as overvalued by 82% of respondents, a 4% increase from the last two quarters. Record number of investors see develop...