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Record-Low Cash Levels Scream ‘Sell!’
Don't look now, but cash levels among professional money managers just ticked a 15-year low in a closely-watched monthly survey.
If you're curious whether that's a contrarian indicator, the answer's "yes."
Most readers (or a lot of you, anyway) are familiar with BofA's Global Fund Manager survey, and some of you are apprised that the bank has a trading "rule" tied to self-reported fund manager cash levels. The figure below shows the annotated history of the cash level series.
At 3.5%, cash
Where is the Bull/Bear indicator?
4.8. Middling.