Bank of America conducted a study of 191 clients who hold $510 Billion in assets under management.  The study found cash levels jumped to 5.5%, the highest since December 2008.  Although according to Bank of America Strategist Michael Hartnett, he views this is a buy signal.  I agree to disagree…

Here’s a link to the article with a few charts that shows the indicator they’ve created.  From what I can see, high cash levels are not a buy signal and I personally don’t consider 5.50% to be a high amount of cash.  It’s hard to tell especially when you don’t know who was surveyed.  This might be a large cash amount for money managers but for asset allocators and wealth managers, this seems relatively low.


Link to Article



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Author: Jared Toren