Wall Street Strategist Asset Allocations
APPLICABLE TIME FRAME(S):
INTERMEDIATE
UPDATE SCHEDULE:
Weekly
REPORTING DELAYS:
None
EXPLANATION:
This is similar to the AAII Asset Allocation survey, but is the Wall Street version instead of the Main Street version.
Each week, the outlook from the investment strategists at the major U.S. investment banking houses are complied to determine their recommended allocation among stocks, bonds and cash. The responses are then averaged to come up with an overall determination of where professional strategists on Wall Street are recommending their clients invest.
GUIDELINES:
The data for this series goes back to 1997, which covers a couple of different market cycles but not enough to fully determine what is "extreme" and what is not.
It's also difficult to determine a good correlation between market movement and changes in strategists' recommendations - sometimes they move with the market, sometimes counter. Generally, however, the data seems to work best as a contrary indicator. If strategists are overwhelmingly overweight one asset class or another, we would look for that asset to under-perform the others, and vice-versa.
ADDITIONAL RESOURCES:
Bloomberg
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