Six years into a bull market, many investors are wary, and rightfully so. Huge stimulus in the form of three rounds of quantitative easing and super-low interest rates have propped up the market, as central banks here and around the world have made risk assets the only palatable investments. A new research note from Jefferies gets right to the point with survey data. It offers the top things fund portfolio managers are doing now, and also what the analysts have gleaned from the survey’s overall data.
While not all fund managers are doing the same thing, most active managers have had a difficult time just beating the indexes, which is what they usually use as a measuring stick.
1) Current allocations to stocks are at the third highest level since the lows of March 2009. Some 58% are overweight to the asset class.
2) Most of the stock allocation increase…
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