Interesting tidbit here via Reuters…
…the level of cash in actively managed stock portfolios has crept up to 3.5 percent of assets, according to Lipper, a Thomson Reuters company. While low on an absolute level, that figure is the highest percentage of cash held by fund managers since the financial crisis in 2008.
Everyone’s staying a bit more liquid than usual in case taper-related selling begins and offers up a buyable correction in equities.
Makes perfect sense, especially given the gains that so many managers are sitting on YTD. Why not keep some powder dry. Why would anyone be pressing in a plus-25% market, unless they were desperate?