Surely this must be the end of the rally
The equity allocation of US households has risen to 60 percent. The last time stocks had this much weight in the average retail portfolio was during the ‘Dotcom’ bubble. This can leave one to conclude that a stock market crisis is imminent.
Forecasting: fund managers smaller in equities
Fund managers consider it less and less likely that the economy will continue to grow in the coming period. Normally, this uncertainty about future growth is a reason for investors to reduce their equity exposure.
“This can cause downward pressure on equity markets,” Jeroen Blokland, of independent investment research firm True Insight, concluded in his Daily Insight on Wednesday, based on the latest Bank of America’s Global Fund Manager Survey.