Risk Appetite Hits Highest Level in Over Three Years - Morningstar - Market Update.
Mutual fund cash levels have often been used as a contrarian indicator. Cash levels are now at their lowest levels since 2004. That was in the middle of good run that didn't end until 2007. As we've seen many times in financial markets, investors can remain irrational for longer than would seem reasonable.
I agree with most of the sentiments though - I think developed markets x U.S. are looking more attractive than emerging markets (equity at least) and the U.S. I think the dollar is probably undervalued but don't believe that will change any time soon. Devaluing the dollar is, I believe, part of the government's approach to economic recovery, so not much, if anything, will be done to offer support until the economy's growth appears self-sustaining. At present, that doesn't appear to be the case.
Mutual fund cash levels have often been used as a contrarian indicator. Cash levels are now at their lowest levels since 2004. That was in the middle of good run that didn't end until 2007. As we've seen many times in financial markets, investors can remain irrational for longer than would seem reasonable.
I agree with most of the sentiments though - I think developed markets x U.S. are looking more attractive than emerging markets (equity at least) and the U.S. I think the dollar is probably undervalued but don't believe that will change any time soon. Devaluing the dollar is, I believe, part of the government's approach to economic recovery, so not much, if anything, will be done to offer support until the economy's growth appears self-sustaining. At present, that doesn't appear to be the case.
