“We held our nerve through the volatility at the end of the third quarter last year and through the fourth quarter,” Mulford said. “We brought equities back to neutral from overweight at the beginning of this year but we are still long risk assets, although not as long as we have been.”
“We still believe risk assets will perform and the world is not going into recession, but we felt it would be prudent to trim back our equities positions a bit and take some risk off the table,” he continued. “The equities rally has been going on since early 2009, so it is a significant change to moveback to neutral.”
