Stocks have 'rarely been as attractive relative to bonds,' says Goldman

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 20, 2020.
Lucas Jackson | Reuters

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Global equities have "rarely been as attractive relative to bonds," according to new research from Goldman Sachs, and investors should rotate into stocks since they'll "likely outperform bonds" over the next twelve months.

The firm's analysis is based on the equity risk premium, which is currently close to an all-time high.

The call comes despite growing concerns that current valuations are stretched. Global stocks have retraced 99% of their coronavirus losses, and Goldman noted that equities are the most expensive they've been since the tech bubble based on the price-to-earnings ratio over the next 24 months.