Equity market sentiment is still too positive to represent a real buying signal for investors, who would be better served by holding back their cash for now, boutique RMG Wealth has said.
Stewart Richardson, CIO and manager of the RMG Real Return fund, said the eurozone sovereign debt crisis has not yet flushed out the last vestiges of optimism from equity investors. "There is negativity but everyone is convinced equities are the asset class of choice. Equities are still too much of a default or favoured asset class," said Richardson. The manager pointed to Business Week's infamous 1979 cover "the Death of Equities" as an example of the sort of disillusionment that he would take as a buying signal. In the event, however, US equity markets finally bottomed out three yea...
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