Market views held by tactical asset allocators and market timers are more extreme than usual, according to MoniResearch Corp., which publishes a newsletter tracking TAA and market timing firms.
"Seldom have I seen such polarization in the views of market timers regarding the outlook for the future," said Steve Shellans, editor of the Portland, Ore.-based newsletter. "One camp senses very scary things out there. ... The other camp thinks the market has a lot of strength left with, at worst, only a minor near-term correction in store."
For instance, Spectrum Financial is strongly bullish, with officials predicting new highs when the dollar and bond market stabilize after the market sell-off in early November. By contrast, Hampton Investors officials are out of the market and expect a down market, according to MoniResearch.