Stocks haven’t been this expensive relative to bonds in almost 25 years. Is a market downturn next?

The Tell

Investors should position for a new global order with high-quality bonds that pay, according to Pimco

Published: June 10, 2025 at 1:53 p.m. ET

Stocks haven’t looked this expensive relative to bonds since the end of the Clinton administration ago nearly 25 years ago.

Yet bonds also look better than they have for a long time. That’s a key takeaway of a new report from bond giant Pimco, which argues that investors should be positioned in high-quality bonds as the reordering of global trade and alliances in President Trump’s second term looks likely to stick around.