«With equity and
bond valuations stretched, the potential diversification benefits and alpha provided by alternatives appear favorable on a relative value basis.»
Not exact matches
Interest rates are close to historic lows, equity
valuations and
bond prices appear
stretched, and global economic growth has slowed.
With credit spreads tight (i.e. a sign that
bonds are expensive) and U.S. equity
valuations still
stretched, investors may consider lightening up on their portfolio insurance, but they should not abandon it.
Valuations have gotten
stretched thanks to years of low interest rates, and conservative income investors have moved their money out of the
bond market and into stocks in search of better returns.
At current levels of the market, the yield of these
bonds more than compensates for the possibility of capital growth in equities (
valuations are
stretched)