Despite an unexpectedly dovish message from the U.S. Federal Reserve last week, a flurry of investor sentiment research paints a picture of pessimism in global markets.
"The overall picture suggests that investment professionals see the search for returns as becoming even more challenging," said Will Goodhart, the chief executive of CFA U.K., which represents Chartered Financial Analysts, in a report out on Monday.
The report showed a jump in the number of CFA members that thought developed market equities were overvalued. 11,000 mostly U.K.-based investment professionals were polled via email and more than half thought developed market stocks were overly expensive.
The proportion of respondents that thought corporate bonds were overvalued also reached its highest level since the CFA's valuations index was introduced three years ago. Government bonds remained viewed as the most overvalued asset class.
Meanwhile, U.S.-focused TrimTabs said on Sunday that fund flow data "does not bode well" for U.S. equities in the short term. The research firm noted that investors had pumped $46.8 billion into equity mutual and exchange-traded funds this month, the highest inflow in any month since October 2013. These heavy inflows meant TrimTabs was remaining cautious in the near term.