Equities most overvalued in 17 yrs; market rally to pause in April: BofA-ML

Global equities are most overvalued in the past 17 years, suggests a recent Bank of America-Merrill Lynch Fund Manager Survey for March, with a net 34% of the respondents agreeing to this. Despite this, allocation to equities in March hit a two-year high with a net 48% of the fund managers remaining overweight on the asset class. The current allocation is 0.8 standard deviation above its long-term average.

Among regions, 81% of leading global fund managers think US is the most overvalued; while a net 44% believe emerging market (EM) equities remain undervalued, followed by net 23% who think euro-zone equities