Where should you put your money in 2011? Some thoughts from the pros:
1. The asset allocation model developed by CIBC World Markets strategist Peter Gibson calls for underweighting stocks when 10-year U.S. Treasury yields rise toward (or above) 3.8 per cent. They are currently around 3.3 per cent.
2. Bond king Bill Gross of PIMCO put $17-million (U.S.) of his own money into bonds when 10-year U.S. Treasuries spiked to 3.5 per cent in mid-December. That's a sign that bonds are still a buy - at the right price.
3. Contrarian alert: At the end of 2010, surveys of stock market sentiment published by Investors Intelligence and the American Association of Individual Investors were within hailing distance of the bullish peaks attained in 2007. David Rosenberg of Gluskin Sheff sees this as a sign there is too much optimism in the market.