If central banks around the world, led by the Federal Reserve, were forced to articulate an investment strategy representative of their monetary policies, it would be to buy everything! Why else would they collectively continue to create liquidity in a coordinated fashion when the mammoth surplus already in existence is not being used in any meaningful way to impact their respective economies? The only explanation can be to continue driving interest rates lower, even into negative territory, thereby continuing to drive financial asset prices higher. Therefore, common sense dictates that investors buy everything!
As more and more liquidity is being created, while at the same time there is an ever shrinking pool of investable financial assets with lower and lower yields, prices are bound to continue climbing. It doesn't really matter whether you buy stocks (SPY) or bonds (BND), because anything with a yield is better than what cash is…