Retail portfolio cash allocation is down to ~14%, one of the lowest readings since the 2000 Dot-Com Bubble burst.
This is HALF the cash allocation seen at the end of the 2022 bear market.
Furthermore, US equity mutual fund cash allocations as a % of assets are down to 1.1%, an all-time low.
All while fund managers’ cash levels as a % of assets under management (AUM) have fallen to 3.2%, also a record low, according to BofA.
This is dangerous.
tbh I've never understood how "cash on the sidelines" works... if someone on the sidelines with $1000 buys stock, someone else has sold the same stock and now has $1000 on the sidelines... is this just a function of quantitative easing...?
Liquidity drying up?