Investors continue to overweight global equities, recommends BCA research.

“Global equities are still in the midst of a bull market, which started in early 2003. We maintain our view that this asset class still offers the best upside potential,” it says in a research note.

“Although short rates in the U.S. may be close to neutrality, the average borrowing cost for the G7 as a whole remains far below the average GDP growth rate. Similarly, the yield curve for the G7 as a whole is still positively sloped,” BCA adds. “As such, short rates continue to subsidize growth as well as corporate profits.”

“Importantly, the tremendous profit boom around the globe has improved valuation parameters for most equity markets and our models indicate that equities are cheap compared with bonds, commodities and real estate,” it concludes.