Paulsen noted that there hasn’t been a single sector consistently leading or trailing the rest of the market during the recent run and there's been little cyclicality between sub-sectors, which may be a sign that the bull has legs.
At a panel about tail risk, Stephen Cucchiaro, president and chief investment officer at 3Edge Asset Management, said that the end of quantitative easing, a military conflict, or a rapid change in inflation might touch off the next financial crisis.
While alternatives offer some protection, advisors need to be careful, warned Jeanie Wyatt, chief executive of South Texas Money Management, in a panel about using the products in client portfolios.
You don’t have the luxury of making a mistake because most alternatives are long-term investments and may be hard to get out of. “They require a high level of due diligence,” she said.
Financial Advisor editors Evan Simonoff and Dan Jamieson contributed to this report.