Here’s Why It May Be Time To Think Defensively

Posted by Steven Russolillo: The Wall St. Journal

Share on Facebook

Tweet on Twitter

Screen shot 2012-02-09 at 12.27.03 AM

  It seems like everyone loves the stock market these days. The S&P 500 is off to the races this year. Only a handful of years throughout history compare to the index’s 7.1% surge to kick off 2012.


BlackRock chieftan Larry Fink says asset allocation should be steered toward 100% equities. No questions asked. Even Dr. Doom is less gloomy than he’s been in the past.


Has everyone gone mad?


Cyclicals have led this year’s rally, with financials jumping 13%, materials surging 12% and tech stocks advancing 11%.

Screen shot 2012-02-09 at 12.27.03 AM

While the rally doesn’t look like its petering out anytime soon, Barry Knapp at Barclays Capital offers some reasons for caution. 


….read it all HERE