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Q4 2018 Quarterly Update: What Does Asset Allocation Tell Us About Long-Term Sentiment?

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Recent data from the Fed's Financial Accounts report suggests households, foreigners, and institutions are overweight stocks (though the Q4 decline lessened the overweight). This has been offset by heavy corporate buying, leaving us with a mild uptrend for the last two years. This supports the argument that this bull market is in the mature phase.

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