MARKETS SPECTATOR: Terrible advice

Retail investors in the US have been missing out on one of the great bull runs, thanks to professional market strategists who advised them to go underweight equities. If they jump back in, expect another stock surge.

The above chart paints a very interesting picture, both for US markets and locally. The blue line shows that market strategists’ recommended levels of equity holdings fell to a record low in June 2012 just as the market embarked on a monster rally. Strategists recommended allocating 41 per cent of portfolio’s to equities.

The problem is that they were blatantly wrong! Since the beginning of June 2012, the S&P 500 has rallied more than 11.5 per cent, leaving a large percentage of investors watching from the stands as the market took off.


{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles