" \\r\\n<br><div id=\\"SpecialReportArticle-ArticleBody-6\\" data-module=\\"ArticleBody\\" data-test=\\"articleBody-2\\" data-analytics=\\"SpecialReportArticle-articleBody-6-2\\"><span class=\\"HighlightShare-hidden\\" style=\\"top:0;left:0\\"\\\/><div class=\\"group\\"><p>As a record amount of money flows into the market, Wilmington Trust's Meghan Shue sees a troubling trend.<\\\/p><p>Shue, who oversees almost $136 billion in assets, is concerned retail investors are rushing into stocks and cryptocurrencies that are high risk and offer few benefits \\u2014 if any at all.<\\\/p><p>\\"It's a little bit of chasing returns in the wrong areas. It's also a little bit of chasing what's already happened,\\" the firm's head of investment strategy told CNBC's \\"<a href=\\"https:\\\/\\\/www.cnbc.com\\\/trading-nation\\\/\\">Trading Nation<\\\/a>\\" on Friday.\\u00a0\\"One thing we have to be careful of is not to extrapolate what we've seen over the recent <a href=\\"https:\\\/\\\/www.cnbc.com\\\/2021\\\/02\\\/11\\\/stock-market-open-to-close-news.html\\">three months into the future<\\\/a>.\\"<\\\/p><p>Shue's warning comes after Bank of America's latest weekly report found <a href=\\"https:\\\/\\\/www.cnbc.com\\\/2021\\\/02\\\/12\\\/mike-santolis-market-notes-teslas-bad-week-after-bitcoin-buy-never-short-a-dull-market.html\\">investor inflows hit an all-time high<\\\/a>. Its latest data shows $58 billion went into global stocks.<\\\/p><p>\\"What we have seen from that Bank of America data are record inflows into U.S. large cap, in the tech sector,\\" said Shue, a CNBC contributor. \\"But less attention is being paid to areas that we think offer better potential for future returns.\\"<\\\/p><p>Shue's concerns also apply to speculative assets involved in this year's Reddit-induced <a href=\\"https:\\\/\\\/www.cnbc.com\\\/2021\\\/01\\\/28\\\/reddit-rebellion-is-an-epic-parabolic-bubble-that-will-burst-boockvar.html\\">retail trading mania<\\\/a> pumping up lower quality stocks \\u2014 as well as <a href=\\"https:\\\/\\\/www.cnbc.com\\\/quotes\\\/?symbol=BTC.CM=\\">bitcoin<\\\/a>. As of Friday's close, the cryptocurrency is up about 65% since January 1 and 360% over the past 52-weeks.<\\\/p><p>\\"Money is coming off the sidelines and is looking more speculative than it has in years,\\" Shue said in a special note to \\"Trading Nation.\\"<\\\/p><p>Rather than piggybacking on areas that have already seen sharp moves higher, Shue urges investors to target economically sensitive stocks, <a href=\\"https:\\\/\\\/www.cnbc.com\\\/quotes\\\/?symbol=.RUT\\">small caps<\\\/a> and <a href=\\"https:\\\/\\\/www.cnbc.com\\\/quotes\\\/?symbol=EEM\\">emerging markets<\\\/a>. Her investment timeline is 9 to 12 months.<\\\/p><p>\\"There's more room to go in terms of long-term catch-up,\\" added Shue.<\\\/p><p>In the case of emerging markets, she contends the group typically performs strongly in the beginning stages of global economic expansions.<\\\/p><p>\\"You have to have more exposure to cyclicals and value than you did last year,\\" she said.<\\\/p><p><a href=\\"https:\\\/\\\/www.cnbc.com\\\/2020\\\/11\\\/09\\\/wall-street-firm-boosts-exposure-to-stocks-in-time-for-monster-rally.html?&amp;qsearchterm=Meghan%20Shue\\">A market bull,<\\\/a> Shue believes the <a href=\\"https:\\\/\\\/www.cnbc.com\\\/2021\\\/02\\\/12\\\/covid-live-updates.html\\">Covid-19 vaccine deployment<\\\/a> will accelerate over the next couple of months and help repair the economy faster than widely anticipated.<\\\/p><p>But she's not ruling out a pullback along the way due to high levels of market euphoria. In that case, Shue recommends buying the dip and going small.<\\\/p><p>\\"In the U.S., the top trade is U.S. small cap,\\" Shue said. \\"If you look at early expansion periods, you tend to see U.S. small cap outperform large by a pretty large margin for a longer period than just a couple of months.\\"<\\\/p><p><a href=\\"https:\\\/\\\/www.cnbc.com\\\/stocks-disclaimer.html\\"><em>Disclaimer<\\\/em><\\\/a><\\\/p><\\\/div><\\\/div>\\r\\n<br><a href=\\"https:\\\/\\\/www.cnbc.com\\\/2021\\\/02\\\/15\\\/from-stocks-to-bitcoin-wilmingtons-meghan-shue-sees-troubling-trend.html\\">Source link <\\\/a>"