Money manager Douglas Gordon is concerned about a potential problem in long-term portfolios of the investors.
Gordon, who is responsible for Russell Investments' asset allocation strategies, believes many investors haven't rebalanced their portfolios to reflect the historic stock market rally from 2019.
According to Gordon, the market rally's robust gains are pushing investors too far into stocks. If there's another pullback, it'll leave them wide open to losses that may have been avoidable.
"It's a good time to re-assess where you're at with respect to being diversified in a multi-asset solution"
Since the plunge in the last days of last year, the S&P 500 rose 18 percent. Because of the market's sharp rebound, Gordon suspects a 3 to 5 percent sell-off could strike stocks in the coming weeks.
For protection, Gordon recommends taking some profits from the historic rally. Plus, he'd consider going overseas to the emerging markets, a strategy he's using right now as part of a balanced allocation strategy.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.