I feel the prices in most assets are in Grey area -certainly not low, mostly on the high side of fair, but not so high as to be unreasonable. I think it’s appropriate to be in ones normal stance, perhaps with a modest defense bias. Because the primary risk lies in the possibility of rising inflation and the higher interest rates that would bring, I think portfolios have to make allowances. This possibility means a) bonds with maturities above 10years are obvious candidates for UW and b) inflation beneficiaries should be considered for OW, including floating rate debt, real estate capable of seeing ren increases and the stock of companies with the power to pass on price increases and/or the potential for rapid earnings growth
https://www.oaktreecapital.com/docs/default-source/memos/2020inreview.pdf