The “smart money” seems to be sounding alarm bells about the equity markets. Big movers like Bill Gross of Janus Capital Group; Bruce Cooper, the CIO of TD Bank; and others, like the Institute for International Finance, are predicting an imminent end to the bull market in equities. Is it time to sell stocks?
Not necessarily. First of all, don’t panic! It’s true that lately we’ve seen news stories reporting on what this or that guru or well-known portfolio manager is supposedly doing. The business media love “big” stories with extravagant claims.
It’s a sure-fire way to get eyeballs to websites. This is especially true during periods of uncertainty, as we’re seeing now, when stock markets have been in an extended bull cycle, when interest rates are poised to rise from historic lows, yet the economic outlook remains uncertain.
