More and more analysts warn that investors' cash deposits have fallen to their lowest levels in history. And this can be terribly bad news for the markets.
It can be interpreted in two directions - first, all are long in the market, or it is the perfect moment for correction. And second, there is no one to support the market with new purchases, with a potential adjustment.
Until now, the share purchase strategy for any 2 to 3% adjustment worked perfectly because investors had enough free funds. What will happen, however, with the next 3% adjustment and who will support the market then?
We can not fail to note the fact that the S&P 500 index has recorded a record long series without a 3% adjustment.
In other words, a new problem emerges in the stock markets - in connection with the lack of cash. Money market assets are at a record low of 17%, while equity investment stocks are also at a record low of 3.3%, according to INTL FCStone.
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