With Cash Levels At Record Lows – Is Everyone In?
Just a few data points to think about.
Like most sentiment measures, assets in these bear funds typically hit contrary extremes at turning points in the market, i.e., assets soar near market bottoms and plunge at tops. Presently, they are plunging – to all-time lows, in fact. Plus.....
That observation courtesy of Ned Davis Research, which framed the comparison as an indication “cash is underweight” in Planet Earth’s asset portfolio. Another way of describing it is that equities have risen so much from the depths of the financial crisis that their value is blotting out everything else to an extent not seen since the dot-com bubble.
That is to say, what can possibly go wrong.