Investors and experts alike are wondering whether we are in a bear market rally or stock markets have begun to pick up in earnest.
Meanwhile, credit is, paradoxically, the cheapest option right now, some analysts say.
Buy Credit, It's Cheap
"What is clearly cheapest right now is credit. Spreads are at very elevated levels," Alan Capper, head of asset allocation at LV Asset Management, said.
"It (credit) is trading at exceptionally cheap levels … and that's where there's best value."
Although high yields and leverage loans still remain quite risky, Capper warned, adding investors must be selective of the credit they buy.
When looking at the stock markets, they are undergoing a relief rally at the moment, but it's doubtful that it will continue, Capper told CNBC.
Don't Buy US Debt
The US is "issuing the same currency their debt is denominated in, so they will be more likely to inflate away their fixed income," David Karsbol from Saxo Bank warned investors.
Inflation will rise again in the medium term as there is so much money being printed, but the economy will become deflationary in the short term, Karsbol predicts.
Instead, he prefers government bonds in Germany and Switzerland as they have "good inflation credentials."
The bear-market rally that we have experienced over the last two days will be short-lived and will be running out of steam by the end of the week, he said.
"Nothing fundamentally has changed," Karsbol told CNBC.
Base Building Has Started
"I think we're beginning to see a base building … we're now seeing some investors realizing how cheap the market is and they're beginning to build positions," Mark Mobius, executive chairman of Templeton Asset Management at Franklin Templeton Investments, told CNBC.
"This will continue I think until the first quarter next year, then we'll see some moves up, I believe."
With near-zero interest rates in the developed world, investors will shift to emerging markets stocks and debt for higher returns, Mobius said, adding that some of the currencies of developing states are undervalued.