Contrarian Consensus

That did not take long. Christopher Brown-Humes in the FT reports on a Merrill Lynch (MER) survey of fund managers that shows a decided turn in sentiment toward the U.S. equity market. In two short months portfolio managers went from neutral to highly positive on the U.S. and have become decidedly neutral on the prospects of former favorite, Japan.

“Two months ago the consensus trade was to overweight Japanese equities at the expense of US equities. The past two months have seen a radical rethink,