As the sovereign debt debacle in Europe slogs along, and with the global economic recovery seemingly stalled out, investors and analysts are sizing up a drastically reshaped global landscape.

In this increasingly volatile market, some see stocks as having much better prospects than bonds , assuming Europe rights itself and the economic recovery finally takes off. Others believe the three-decade bull market for bonds still has legs.

A lot may depend on your inflation outlook — but bonds, particularly Treasurys, have performed so well for so long, it’s hard to think fixed income is the horse to ride. At the same time, stocks have been full of disappointment lately, and investors are much more risk-conscious today.

Still, the sky hasn’t fallen — at least not yet. Consequently, is a bull market in stocks hiding around the bend?

Sam Stovall, chief equity strategist, S&P Capital IQ, accepts the premise that stocks look attractively valued for the long term, but he's generally cautious, citing many problems, particularly in Europe. Currently, he says, investors would rather play it safe and stick with a more conservative portfolio and investment outlook.

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