The most hated bull market in history is set to continue according to Richard Bernstein of RBA. He offers up 5 signs as evidence that this continues to be a market that will climb the wall of worry:
“Investors never fully embraced the bull market and remain very uncertain despite that the bull market is more than five years old. Consider the following:
1) Credit Suisse data shows that US pension funds have their lowest equity allocations in more than 30 years.
2) BofAML’s “Sell Side Indicator” highlights that Wall Street strategists continue to underweight equities in their recommendations.
3) ISI’s hedge fund survey suggests that hedge funds are neutrally positioned.
4) ICI mutual fund flows have been negative for US equity funds for more than two months.
5) As mentioned, S&P 500® high beta stocks are selling at their cheapest relative valuations in nearly 30 years.”
Read his latest note here.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.