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.