Stock valuations may be at or near record highs and causing concern, but they are still a better investment than bonds, one strategist has told CNBC.
"The global economy is actually improving," Luca Paolini, chief strategist at Pictet Asset Management, told CNBC Friday. "We also see an improvement in earnings revision, which I think is very important."
"[Equity] valuation is not great, but it's still much better than you can find in bonds," he added. "We still feel there is a decent upside for at least the next six months."
Bonds have performed well in 2016. One of the best performing assets have been U.K. government bonds, although improving data in the country and rate hike jitters from the U.S. have tempered their stellar rally.