O’Shaughnessy has another insightful article discussing the flood of money out of equity funds and into bond funds this year. Click here to read. He shows the results from shifting allocations dramatically to fixed income after the last 14 recessions…not pretty.
This is quite the dilemma for investors. Their heart tells them to shun stocks. Their mind tells them that they should overweight stocks. I can’t think of a better reason to give serious consideration to a global tactical asset allocation fund, like our Global Macro strategy, that systematically allocates to different asset classes based on their relative strength.
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Posted by Andy Hyer 
