Thursday, August 14, 2014

Cash on the Barrelhead

Should you be worried about this stock market? Fund managers are getting a little nervous. According to a new survey by Bank of America Merrill Lynch, funds’ cash holdings have reached their highest level since June 2012.

The fund managers' cash holdings jumped sharply in August, from 4.5 percent in July to 5.1 percent as of now. The survey talked to 224 different managers, who manage a total of $675 billion.

But this isn't just protection against a drop in equities; the managers also want to own dollars right now. Some 61 percent said the dollar is undervalued right now, and 84 percent of them expect the dollar to rally - a record high for this survey.

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