Wednesday, March 8, 2017

We are fully invested

It's another stark warning sign for investors.Total cash holdings in funds have fallen to their lowest level in nearly two decades, a signal that investors worldwide are seriously underweight in cash, according to a study from Ned Davis Research cited by Bloomberg. As a result, "There’s not a lot of cash to act as a shock absorber," Ed Clissold, the firm's chief U.S. strategist, told Bloomberg. The risk is that a market downdraft may be exacerbated if investors with insufficient cash reserves have to start liquidating equities while prices are falling.

Read more: Cash Levels at Two-Decade Low Boost Market Risks | Investopedia 

So, corporations hold the cash accounts, and corporations mostly  are plotting tax schemes  at the moment.  Remember what comes next in the sequence. Sudden rise in rates, tipping point and Trumpcopter.

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