![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjw3jZSoXV36ybr3seZZ_621X2JAY0oMOeKOvuHm9m8vCVwI15Y_tHzGRlaqS622NG0QZLnZODa17pyB_diFV6UT7zfss4V7fHtc-YQI3MqDp5OCv8UPdod2JARuTeaQYSo8DcN9t7GvuFSUIVPZOJrrC6rdHABHNoG6_s5h503QSn0myUEe1ZGF-8X9g/w400-h235/FMS%20risk%20positioning.jpg)
Within their global equity allocations, managers were buying emerging markets (read: China) and eurozone equities and selling US equities, which is consistent with what I have observed in my relative return analysis.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUX3gHbWMg9SI78GHeG8nfX9c6o98Dilaz5X1uSp9zmauH2XmbGY9f9sHLP1fzjhFw4khf0TsO_hLPxISF4F28r0HjlxOOxLx0nTdXufDrKVTUHFzP-4OXWavxz4B6DPdmoqEHEhmtgNnEVah1zq0AOxK6pXigGnUhy8XyP4tdfGDLYKgYJ77KI5QBLA/w400-h400/SPY%20vs%20ACWI.png)
Hidden beneath these obvious headlines is a far more cautious asset allocation positioning that are inconsistent with the macro outlook implied by the risk-on nature of the recent equity stampede. A schism is appearing between the how the asset allocators view the market and how equity managers view the market.
The full post can be found here.