I was going through the Global Fund Manager Survey this week and thought this one stood out the most.
Remember, this survey is loaded with all kinds of stuff. So there’s something for everyone to cherry pick to fit their narrative.
But this one would catch my eye, regardless of my thoughts on the trend of the market.
We’re looking at the percentage of investors who say they’re overweight on cash at any given time, all the way back to 2001. But what it’s really showing is that a net percentage of investors are actually underweight cash.
So what’s that mean to us?
Well as BofA points out here, this behavior is “Indicative of an early-stage recovery similar to recoveries after the GFC (Oct ’09) and the dotcom bubble (Jan ’02)”.
It’s similar to all the breadth thrusts we’re seeing in the indexes, they typically come near the beginning of cyclical bull markets, not near the end of them.
Add this one to the list.