U.S. equity strategist Douglas Cliggott of J.P. Morgan may be worth listening to. Cliggott was bearish last year. And he's bearish going forward, expecting the S&P 500 to fall to 950 by the end of 2002.
Stocks, he said, are still expensive, with the S&P 500 trading 31 times his estimate for this year's profits.
"We think this is an opportune time for investors to reduce exposure to U.S. equities," Cliggott wrote in his latest note to clients. He advises keeping stocks to 50 percent of investments, with the rest split evenly between bonds and cash.
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