Developed market assets are overvalued after a stunning rally in 2013, according to a survey of investors and analysts, who also said that emerging market equities were starting to look cheap.
In the fourth quarter of 2013, the number of investors and analysts who view developed market equities, government bonds and corporate bonds as overvalued compared to the previous quarter increased, according to a valuations index by the CFA institute of investment professionals.
Nearly half of the U.K.-based investment professionals surveyed (44 percent) saw developed market equities as overvalued, compared with 37 percent in the third quarter.
(Read more: Why the market could see a 17% drop in 2014)
Government bonds were the most overvalued asset class, according to 78 percent of respondents, while a third of investors said corporate bonds were overvalued.
"During Q3 (third quarter), there had been signs that our members believed we were moving towards a normalized market, with the diversity of investor opinion over the valuation of different asset classes narrowing," Will Goodhart, chief executive of CFA UK, said in a press release.
"The final quarter of 2013 marks a reversal of this trend, with the perception that asset classes are overvalued rising across the board, most markedly in developed market equities and government bonds."