Fund managers are maintaining an optimistic view of investment prospects despite recent market challenges. Many asset allocators are holding their positions in equities and waiting for bond yields to climb to 6% before redirecting money into fixed income investments. However, some managers have already begun shifting away from stocks toward bonds.
The difference between those waiting and those already moving highlights differing views on when to make the switch from shares to bonds. While stock markets have stalled and bond markets face uncertainty, asset managers overall are not discouraged about longer-term prospects.