Rally at risk as long-term investors shun stocks

This partly reflects the confectioner’s turbulent history, but it is also indicative of the changing shape of the European equity market.

A number of recent studies have shown that long-term institutional investors have cut equity allocations by as much as 40pc over the past two years. Many pension funds were net sellers of domestic equities even before the crisis, as they sought to diversify internationally and reduce risk. But by selling into the rally, and not reweighting portfolios in-line with market moves, the shift away from shares has been accelerated.

http://www.telegraph.co.uk/finance/breakingviewscom/6218807/Rally-at-risk-as-long-term-investors-shun-stocks.html