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The team out of Truist downgraded equities (^DJI, ^IXIC, ^GSPC) from Attractive to Neutral this week. Truist co-Chief Investment Officer and chief market strategist Keith Lerner sat down with Market Domination's Julie Hyman and Josh Lipton to elaborate more on this — how exactly should investors interpret a Neutral rating on equities?
"Basically what we're saying is relative to our benchmark, let's just say it's a 50/50 — 50% stocks, 50% bonds. Over the last year, we've had an Overweight or more money relative to that benchmark weight in equities," Lerner explains.
"What we're saying is right now we're above that benchmark, we want to bring back our equity exposure back down towards benchmark."
Also catch Keith Lerner explain the "soft patch" of economic data he was seeing that contributed to this downgrade.
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This post was written by Luke Carberry Mogan.