Richard Bernstein Tracks Recommended Asset Allocations

By on November 16, 2008

In a yesterdays N.Y. Times, Richard Bernstein, chief investment strategist at Merrill Lynch, is mentioned as tracking recommended asset allocations by Wall Street firms. He claims it is a tremendous contrarian signal for spotting market trends. Bernstein notes that when the firms, on average, recommend a higher that 60-65 percent allocation to equities, it is usually bearish for stocks. When the same firms only recommend a 50% stock allocation it can be a bullish sign. His survey conducted 2 weeks ago shows a 58% equity allocation, not low enough to make him bullish on stocks.


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