The S&P 500 is probably 10% to 15% overvalued says BMO private bank CIO Jack Albin, but he's keeping stock exposure high in most client portfolios. It's not all about valuation, he believes - you can't ignore monetary policy and momentum. He'll consider cutting exposure to stocks if they fall 6-7% in a month. "At some point we are going to say, enough is enough, and we are just going to go to cash."
The "fully invested bear" phenomenon - where pros feel they have no choice but to own stocks - is cropping up more and more often of late.
"At the present time, I'm not feeling overly concerned," says Waddell & Reed CEO Henry Herrmann. "More money will come into the stock market ... there is no alternative. Bonds simply don't get you there."