Manager Who Timed March Bottom Cuts Risk With ‘Alarm’ Sounding
- Pacific Life Fund Advisors turned bullish back on March 20
- Firm now dialing back risk with Covid, stimulus in question
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Back on March 20, three days and less than three percentage points from the stock bottom, Pacific Life Fund Advisors decided it was time to up their portfolios’ risk exposure. Now, the $32 billion money manager is reversing that trade.
The way Max Gokhman, the firm’s head of asset allocation, sees it, there’s no way stocks are fairly valued with the S&P 500 Index back near January levels and the economy significantly worse off than it was then. With coronavirus cases climbing, fiscal stimulus in question and political risks rising, negative catalysts abound.