(Bloomberg) — Stocks wiped out gains in the final 30 minutes of Wall Street trading, with investors rebalancing their portfolios after a rally that’s already topped $4 trillion this year.
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Equities finished lower for a third straight day, following a buying frenzy that saw the S&P 500 climb almost 10% in just three months. With the equity outperformance, pensions would need to sell roughly $22 billion in global stocks and buy $17 billion of fixed income in order to return to prior asset allocation levels, according to a recent estimate from Morgan Stanley.
The US equity benchmark is on track to notch five straight months of gains from November through March — a feat only accomplished one other time this century in 2013. Now, traders are debating whether the road gets rougher for the rally to keep chugging along as stock valuations remain elevated relative to history.
“We still expect to see normal…
