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Komfie Manalo, Opalesque Asia:

According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both bonds and equities and have signaled concern about a valuation bubble forming. The survey was conducted from 2 to 9 April 2015 with the help of market research company TNS. 177 fund managers participated.

The proportion of global investors saying equity markets are overvalued has reached its highest level since 2000. A net 25% of respondents say that global equities are currently overvalued, up from net 23% in March and net 8% in February. This is still, however, short of the record-high level of a net 42% in 1999.

At the same time, the proportion of respondents saying that bond markets are overvalued has reached a new high in the survey’s history. A net 84% of the global panel says that bonds are overvalued, up from a net 75% in March. At the same time, 13% believe that "equity bubbles" are the biggest tail risk markets are facing, up from 2% in February.

"April’s survey offers further proof that global investors are front-running global monetary policy," said Michael Hartnett, chief investment strategist at BofA Merrill Lynch Research. "We are seeing a form of rational exuberance in Europe where a positive view on stocks is supported by fundamentals – b......................

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