Remember a month ago when nearly everyone was bearish?  The monthly BofA Merrill Lynch Global Fund Manager Survey showed that cash levels fell to the lowest since June 2013. Funny how quickly sentiment can change.  The financial press and bearish investors are taking the stat that “cash levels fell to the lowest since June 2013” as a contrarian indicator suggesting forward weakness, but we actually looked at what it meant.  Although you know we are looking for 2-5% correction over the coming couple weeks, it would be inappropriate to be negative based on the lowest cash levels since June 2013 because the S&P 500 (SPX) rallied an additional 14.5% over the ensuing six months into year-end.

Please be careful about what you read in the financial press and remember our goal of “evidence over emotion.”


Past performance is not a guarantee of future results. Index returns are unmanaged and do not reflect the deduction of any fees or expenses.

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