It’s not just the prospect of deteriorating fundamentals that has Man Group’s Mark Jones skeptical about stocks these days. It’s also the risk of money flowing into fixed-income investments now that they’re sporting attractive yields. Jones, who is the deputy chief executive of the world’s largest publicly traded hedge-fund manager, joined the What Goes Up podcast to give his outlook on markets and explain what strategies have been working well at his firm.

“I think the risk-reward in equities is very, very tough at the moment,” he says. The first reason is a potential further cut in earnings expectations. Second is the flow of money into alternatives to stocks such as government bonds and corporate credit. “Whether that’s the consumer or whether that’s big institutional clients starting to come back to an asset class that, frankly, had fallen relatively out of favor, some of that flow of funds is also an issue for equities as just people move money around.”