It’s a contrarian’s dream come true.
Contrarian investors like to buck the trend. They buy when other investors are selling and sell when others are buying.
Last week, Bank of America (BofA) delivered a contrarian’s dream. BofA’s monthly survey of 225 global asset managers, who are responsible for $645 billion in assets under management, showed the managers were almost fully invested, according to CNBC.
The survey showed asset managers’, “…cash levels at the lowest since March 2013, global equity allocations at a 10-year high, and a record number of respondents reporting taking a ‘higher than normal’ level of risk,” reported Randall Forsyth of Barron’s.
Asset managers’ optimism reflects central banks’ monetary policies, governments’ fiscal stimulus programs, and positive signs of economic recovery.
Last week, yields on 10-year Treasuries moved higher and the Dow Jones Industrial Average advanced. The Standard & Poor’s 500 Index and Nasdaq Composite both finished the week lower.
IT’S BLACK HISTORY MONTH. Throughout the month of February, people in the United States celebrate the achievements of Black Americans. President Gerald Ford started the tradition in 1976 to “…seize the opportunity to honor the too-often neglected accomplishments of Black Americans in every area of endeavor throughout our history.” Test your knowledge by taking this brief quiz.
Quiz Answers:
“No person is your friend who demands your silence, or denies your right to grow.”
–Alice Walker, American novelist and poet
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These views are those of Carson Coaching, and not the presenting Representative, the Representative’s Broker/Dealer, or Registered Investment Advisor, and should not be construed as investment advice.
* This newsletter was prepared by Carson Coaching. Carson Coaching is not affiliated with the named firm.
* This report was prepared by First Trust Advisors L. P., and reflects the current opinion of the authors. It is based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
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Sources:
https://www.investopedia.com/terms/c/contrarian.asp
https://www.barrons.com/articles/higher-interest-rates-dont-trouble-the-stock-marketat-least-not-yet-51613786125?mod=hp_LEAD_1 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/02-22-21_Barrons-Rising_Interest_Rates_Dont_Trouble_Equity_Investors-At_Least_Not_Yet-Footnote_3.pdf)
https://www.reuters.com/article/us-global-stocks-bubbles-idUSKBN2AJ1IL
https://www.barrons.com/articles/why-this-bull-market-shows-no-sign-of-ending-soon-51613781492?refsec=the-trader (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/02-22-21_Barrons-Why_this_Bull_Market_Shows_No_Sign_of_Ending_Soon-Footnote_5.pdf)
https://apnews.com/article/fed-low-rates-coronavirus-economy-a142da0b3bac10860247732cdc2a7acf
https://www.presidency.ucsb.edu/documents/message-the-observance-black-history-month-february-1976
https://www.biography.com/news/shirley-chisholm-quotes
https://www.axios.com/newsletters/axios-markets-8b02fc2a-fb10-4dd0-b31d-978077ee9cfa.html
https://www.goodreads.com/quotes/531902-when-you-write-it-s-like-braiding-your-hair-taking-a
https://www.axios.com/newsletters/axios-markets-b7f34821-1a4a-46f4-8e09-b67437a1539b.html