The Leuthold Group, one of my favorite fund managers and research shops (LCORX), says:
"Corporate bonds still attractive relative to Treasuries, and higher quality looks better than lower grade High Yield. Also seeing more positives in the Muni sector. Q1 2011 earnings were strong, on par with comparisons the previous two quarters. The average company reported YOY earnings per share improvement of about +25%, supported by YOY average revenue improvement of about +10%. Growth stocks are now in clear leadership position relative to Value stocks across all three market cap tiers. Value stocks are overvalued relative to past history."
And Leuthold is partial to value.