Wall Street Concedes There Is Finally an Alternative to Stocks
For years after the 2008 financial crisis, investors held on to the belief that “there is no alternative” to stocks, especially U.S. equities, but that may be changing. Fund managers’ allocation to stocks is sitting at about 2.2 standard deviations below its long-term average, according to a February survey by Bank of America Corp. Meanwhile, fund managers have more of their portfolios than usual in bonds, emerging markets, cash and commodities, the bank said. The trend is being noted by Wall Street. “For a number of years, U.S. growth stocks were kind of the only game in town,” said David Lefkowitz, head of equities Americas at UBS Global Wealth Management. UBS has been advising clients to look beyond U.S. stocks and consider shifting more money to areas such as emerging market assets as well as investment-grade bonds.
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