Does it make sense to rotate into equities out of bonds?

This month’s Bank of America Merrill Lynch’s Global Fund Manager Survey revealed that respondents were the most overweight equities relative to government bonds since August 2014. This is not surprising. After all, the global economy is in fine fettle and very accommodative monetary policy seems to be on borrowed time. But does it really make sense to rotate into equities out of government bonds?

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.