Stocks are up, Street consensus equity allocation remains near historic low

The following was posted by AllStarCharts . . . “Bank of America Merrill Lynch has a Sell Side Indicator that measures Wall Street’s consensus equity allocation. Their model closed out the year at 47.0, which is still near a historic low. This is telling us that although equities keep melting up, bearishness on equities remains at extremes and firmly in “Buy Territory, according to the model. This data goes back to 1985 and hit an all-time low this past summer. As you can see, we haven’t bounced much. Historically when the indicator falls below 50, total returns over the subsequent 12 months have been positive 100% of the time. BofA/ML’s model suggests a 26% 12-month price return based on the current bearish sentiment readings.Certainly seems reasonable -eh? Jeb B. Terry Sr. Jan 19,2013

BofAML Sell Side Consensus Indicator 1-19-13

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