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Here's why stocks are the new bonds: Strategist

John Zich | Bloomberg | Getty Images

Record-low bond yields this year have forced fixed income investors into equities, a trend that's not expected to change anytime soon, Convergex told clients.

"Stocks, in short, are the new bonds," wrote Nick Colas, chief market strategist at Convergex Group, explaining a shift in sentiment that's driven bond-proxy sectors like utilities and telecoms up more than 20 percent apiece this year.

"With a yield on the of 2.13 percent versus 10-year Treasurys at 1.56 percent, they provide a superior payout, " he said, emphasizing the appeal of equities over Treasurys.