Wall Street goes bearish on US stocks
By Vivianne Rodrigues and Arash Massoudi in New York
Wall Street strategists are expressing their most bearish views on US equities in nearly three years as investor worries mount over the threat of a eurozone break-up and the outlook for the global economy.
The bearish outlook comes even as stocks enjoyed their best first quarter since 1997. However, since stocks peaked in March, the S&P 500 has shed more than half its prior gains for the year.
Big Wall Street companies have cut their asset allocation to equities to its lowest level since May 2009, according to a Bloomberg index that measures average allocation for stocks. Asset allocation to equities has declined to 52 per cent from 62 per cent in January.
Others stated that such a degree of bearishness at big Wall Street groups actually provided a contrarian sign.