Bullish Item o’ the Day: Financial Advisors Hate Equities
- Joshua M Brown
- January 3rd, 2012
So the bulls have this on their side for 2012...
From Investment News:
Indeed, far fewer financial advisers intend to increase their clients' equity allocation over the next 12 months than were planning to do so a year ago, and many of the buyers will be looking for bargains.
In fact, only 43.6% of those who responded to InvestmentNews' 2012 Investment Outlook survey said they will increase their clients' allocation to U.S. stocks. Almost an equal number — 42.7% — said they will keep the allocation the same as it was in 2011.
That lack of bullishness also is apparent when it comes to international stocks, with just 18.7% responding that they will increase clients' exposure in that asset group.
This pessimism compares with the start of 2011 when 63.4% of respondents were adding exposure to equities for their clients. You can't fault them - it was a wild time: QE2 was in full effect, Netflix was actually still a thing that mattered and Jimi and Janis were just fueling the revolution, man.
But this year, advisers have been through the mill. They're not very excited about stocks and, as a group, they tend to be a phenomenal contrary indicator (trust me).
It ain't much, but it's a start.
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The Reformed Broker is a blog about financial markets and the economy. Joshua Brown is a New York City-based investment advisor for high net worth individuals, charitable foundations, retirement plans and corporations... More.