You need a PLUS account to view this content. Try one month of PLUS for FREE.
Already have an account? log in
Plunging Cash Levels Sound Alarm For Suddenly Shaky Stock Rally
Don't look now, but fund manager cash levels are on the brink of triggering a contrarian "sell" signal.
As a rule, I don't put a lot of (figurative or literal) stock in... well, in trading "rules." That means I'd be a terrible algo. Which is fine. I was never good at being an automaton.
But if you're the type who likes "thresholds" and signals, it's worth noting that the average cash level among fund managers polled for this month's installment of BofA's Global Fund Manager survey was just 4.2
Frankly, it felt like the top was in when Wells Fargo raised their year-end S&P target. Perhaps markets, pulling forward expectations as they do, have decided to front-run “Sell in May…”