➜ Investment management fi rm that utilizes aunique top-down, macro approach to investing
➜ Strategies include: equity allocation, asset allocation and equity income
➜ AUM approximately $910M (as of 9/30/12, including assets under advisement)
➜ Strategic PartnersEaton Vance | Open-End Mutual Funds
UBS | ETF Managed Account Portfolios
First Trust | Equity Income-Oriented UITs
➜ Quantitative Research & Investment Team with an average of 23 years experience
RICHARD BERNSTEIN
Former Chief Investment Strategist at Merrill Lynch
As Chief Investment Strategist, Rich determined the fi rm’s asset allocation for: - Equities - Fixed Income - Commodities - Alternative Investments
CNBC contributor; NYU Professor of Finance; Journal of Portfolio Management Advisory Board member
Institutional Investor All-America Research Team member 18 times, including 10 years top-ranked
Recently inducted to the Institutional InvestorAll-America Research Hall of Fame
Named to Registered Rep. Magazine The Ten to Watch for 2012
Ranked #1 from 1995 -2003 in Quantitative Research and #1 in Portfolio Strategy in 2004 by Institutional Investor Magazine
website: RBAdvisors.com phone: 212-692-4000 twitter: @RBAdvisors ©2012 RBALLC
OUR PRODUCTS
Asset Allocation
Eaton Vance Richard Bernstein
All AssetStrategy Fund
UBS ETF Managed Portfolios
Richard Bernstein Advisors SMRT All-Asset
Moderate Portfolio – featuring Alphadex®
Separately Managed Accounts
Equity Allocation
Eaton Vance Richard Bernstein Equity
Strategy Fund
First Trust RBA American Industrial
Renaissance Series 1
Richard Bernstein Advisors SMRT Tactical Equity Portfolio
– featuring Alphadex®
Richard Bernstein Advisors SMRT Strategic Equity Portfolio
– featuring Alphadex®
Separately Managed Accounts
Income
First Trust Richard Bernstein Advisors Quality Income Portfolio
UIT Series 1-5
First Trust RBA Global
Dividend Kings UIT Series 1-2
Separately Managed Accounts
OUR FIRM
website: RBAdvisors.com phone: 212-692-4000 twitter: @RBAdvisors ©2012 RBALLC
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Visit our website and download, read and view our extensive library of whitepapers, commentary and major media coverage.
RBA in the Media:
USA Today - Roundtable
Fortune - Where to Invest in 2012
The NY Times - For Clues to U.S Stocks, Look to Greek Bonds
Registered Rep. - Ten to Watch in 2012
Financial Times - Turn America into a Giant Enterprise Zone
MarketWatch - Five Money Moves one China Basher is making Now
The NY Times - The Wall of Worry Has Never Looked So High
See complete list of press online@ RBAdvisors.com
Commentary topics include:
- This Is What Bull Markets Are All About
- Is Buy And Hold Dead?
- Why Smaller Banks Are Attractive
- You Should Worry About EM Infl ation, Not US Infl ation
- Alternative To Alternatives
See complete library of Insights online @ RBAdvisors.com
This is what bull markets are all about
Investors have the impression that bull markets are days of wine and roses. However, nothing could be farther from the truth. Bull markets are periods of fear. This becomes quite obvious when one examines the valuation and sentiment data associated with the 1982, 1990, 1995, and 2003 bull markets.
The current bull market, which began in March 2009, seems to be fitting the historical precedent. The S&P 500 has appreciated nearly 100%, yet most observers are hesitant to concede that the US stock market is in a bull phase. Individual investors are still searching for protection, and ignoring the fact that equities have appreciated significantly more than the fixed-income yields for which they search. Institutional investors are still looking for “absolute returns” and paying high fees to alternatives managers instead of simply buying old-fashioned stocks.
This pervasive hesitancy to invest in US equities despite the asset class’s significant performance further cements our bullishness regarding the asset class. Bull markets typically end with over-enthusiasm, and not the fear that is so prevalent today.
Sentiment Our Wall Street Sentiment Indicator clearly shows the extreme level of investors’ fear. The survey, originally crafted in 1986, is a survey of Wall Street strategists’ recommended equity allocation for a balanced fund. Extreme readings (i.e., one standard deviation above or below the long-term norm) have historically been reliable sell and buy signals.
Chart 1 shows the Wall Street Sentiment Indicator with “buy” and “sell” signals. The current reading, the lowest suggested equity allocation in the indicator’s history, certainly meets the requirements of a “buy” signal. Investors appear historically scared of equities.
Chart 1:
Richard
Bernstein
August 9, 2012
This is what bull markets are all about
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS
Richard Bernstein Advisors LLC 520 Madison Avenue 28th Floor New York, NY 10022 212-692-4000 www.rbadvisors.com
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Wall Street Sentiment Indicator (as of July 31, 2012)
Current Statistics: Latest = 43.9% Average = 57.5% Top Extreme = 63.3% Bottom Extreme = 51.8%
EXTREME BULLISHNESS BEARISH FOR STOCKS
EXTREME BEARISHNESS BULLISH FOR STOCKS
Source: Richard Bernstein Advisors LLC
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