Scouller says that there is a strong chance of a correction after three months in which the FTSE All Share has risen 12.79 per cent and the FTSE All-World Index by 15 per cent.
If today’s stock market performance is anything to go by, he may well be right. At the time of writing, the FTSE 100 is down 1.62 per cent and is set for the biggest single-day fall of the year by some distance.
For those who want to remain invested, he suggests considering those trusts with a track record of doing well when the market slumps.
Scouller said: "We think there is a good case for looking at some funds which have the potential to perform relatively well in any forthcoming equity market correction."
"The other option of course is to take some profits and sit on some cash until there is more value in the sector."
Here are five that he thinks are worth a look:
Ruffer Investment Company
This £286m portfolio has a strong track record of low volatility and protecting against the downside.
It is one of the best-performing Global Growth trusts over five years thanks to its strong performance in 2008, when it made 23 per cent while the FTSE All Share fell 29.93 per cent.
"Historically, the portfolio has performed relatively well at times of equity market weakness," Scouller said.
However, the trust’s defensiveness has held it back recently and it gained only 2.11 per cent in 2012 while the index climbed 12.3 per cent.
Performance of trust vs sector over 5yrs
Source: FE Analytics
Managers Steve Russell and Hamish Baillie were open about this in a note to investors last month.
"In 2012 we made painfully slow progress when conditions appeared to be benign. Our investments in greed performed fine; western equities contributed 3 per cent and Japanese equities added some 5 per cent," they wrote.
"It was the protective investments which held us back; the US dollar, put options and gold mining shares all cost the portfolio."
"It was a year when protection was not required and unlike most other times in the company’s history (2006/7 being the exception), there was a monetary cost to our offsets rather than just an opportunity cost."
"This is symptomatic of the world in which we live, where safety has become very expensive. Our answer is to ensure that the greed assets sweat harder rather than increasing the level of risk in the portfolio."
This determination to stick to defensive stocks could appeal to investors worried about a market correction.
The trust is sitting on a slight premium of 0.9 per cent and has an annual management charge of 1 per cent.
Capital Gearing
This £100m multi-asset trust has five FE Crowns and a record of low volatility and strong long-term returns.
Over five years it has made 73.09 per cent while the average Global Growth trust is up 33.89 per cent, according to data from FE Analytics.
It has done this with an annualised volatility of just 9.15 per cent compared with a sector average of 17.47 per cent.
Scouller commented: "The investment objective is to achieve capital growth in absolute terms principally through investment in quoted closed-ended and other collective investment vehicles, invested in equities or property."
"There is a willingness to hold cash, bonds, index-linked securities and commodities when appropriate."
The trust currently has 44 per cent invested in index-linked sovereign debt, with a further 10 per cent in other fixed interest instruments.
Investment trust zero dividend preference shares make up 16 per cent and ordinary shares in investment trusts 23 per cent.
Like the Ruffer trust, its performance has lagged its peers in the up markets of the past year, yet despite this it remains on a hefty premium of 8.1 per cent, according to AIC figures.
The TER is 1.4 per cent.
Personal Assets
Sebastian Lyon’s £584m trust has produced steady returns with an annualised volatility of just 6.36 per cent over the past three years, according to data from FE Analytics.
Its three-year returns have now dipped behind those of the average UK Growth fund, according to FE Analytics data, after it failed to keep up with the market in the past few months.
Performance of trust vs sector and benchmark over 3yrs
Source: FE Analytics
The trust’s focus is on capital preservation and to achieve this it uses a mix of blue chip equities – 44 per cent of the portfolio – and fixed interest holdings.
The holdings in US and UK index-linked UK gilts make up 41 per cent of the portfolio while gold bullion makes up a further 13 per cent.
The board runs a discount-control policy to keep the trust trading near to NAV. The TER is 1.15 per cent.
The Cayenne Trust
Cayenne Trust is a trust of trusts. Capital Gearing holds some of its convertible stock in its top-10 IT holdings.
Scouller said: "The aim is to achieve consistent positive absolute returns by investing primarily in investment trusts and closed-end funds. Derivatives and similar instruments are used for capital preservation."
The trust has 44 per cent in equities, 32 per cent in private equity and 9 per cent in fixed interest. There is also a short position of 16 per cent, adjusted for delta.
On a capital-return basis, the trust is not particularly exciting, having made only 12.1 per cent over five years. This is less than the rate of inflation, which means it has seen an erosion of capital in real terms.
Performance of trust vs sector and index over 5yrs
Source: FE Analytics
However, the volatility of the trust over that time is low, at 13.71 per cent.
It has beaten inflation over three years. The TER is 1.7 per cent.
RIT Capital Partners
Rothschild Investment Trust Capital Partners is managed by the directors, led by Jacob Rothschild.
The £1.8bn trust has a relatively poor record over five years, according to data from FE Analytics, having returned just 10.89 per cent in that time.
Last year it lost 2.63 per cent while the FTSE All Share rose by 12.79 per cent.
"RIT has had a tough year in performance terms," Scouller said. "However, the portfolio tends to do relatively well in weaker market conditions."
The trust is largely an equity portfolio and invests in both listed and private companies.
It also has relatively small holdings in bonds and currency.
The TER on the fund is 0.97 per cent.
Other fund sectors that may be relatively defensive in an equity market sell-off include healthcare, infrastructure and debt. However, investors need to be cautious of some high premiums to NAV in these sectors, notably infrastructure.