Found this interesting in relation to only U.S stocks at a time where it seems The Fed looks determined to get asset prices up further before it raises rates.
''Even though Bank of America’s fund manager survey shows that institutional investors are cautious on the outlook for the equity markets the figures may be useful for contrarian investors. Past trends have shown that a high cash allocation among managers generally precedes a market rally. This relationship has prompted Bank of America to introduced an FMS Cash Rule which works as follows:
“When average cash balance rises above 4.5% a contrarian buy signal is generated for equities. When the cash balance falls below 3.5%, a contrarian sell signal is generated.”
So, for contrarian value investors now might be the time to return to the equity markets''
http://www.valuewalk.com/2016/10/fund-m ... ash-surge/
Fund Managers – Cash weighing indicating buying opportunity?
- spitthedog
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Fund Managers – Cash weighing indicating buying opportunity?
"I don't care what the people are thinking, i ain't drunk i'm just drinking"
From my reading stocks do well when interest rates go up, contrary to what many think. The reason being that when rates are going up the economy is recovering. Companies are profitable. This does not directly relate to this topic.
- spitthedog
- Is the World Outside still there ?
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More something like this perhaps - http://www.zerohedge.com/news/2016-10-1 ... n-now-play
But maybe bullish for stocks short term as that's all the market cares about now?? ;
BOJ now buying stocks. The EU is possibly fucked further down the line (just ask jock jock or starkmonster). FTSE too tied to the falling pound and commodities. China slowdown, commodity bear market continues? Huge capital outflows in China? Where to? EM currencies falling heavy against the USD. U.S debt yielding too little to be attractive. Central banks repressing market volatility. Strength of USD a sign of a thirst for USD assets? Banks had been earning interest from money parked at the Fed so no need to lend. No big market upsets likely before the election. Trump loves debt, Clinton loves Goldman Sachs. Market tops usually happen on euphoria/greed rather than fear?
So evil central bankers, but a last gasp push into U.S stocks as they are now the only game in town?
Lizards, think lizards. Maybe Springrain was right all along?
Anyway, i'm off to Infowars and David Icke.com.
But maybe bullish for stocks short term as that's all the market cares about now?? ;
BOJ now buying stocks. The EU is possibly fucked further down the line (just ask jock jock or starkmonster). FTSE too tied to the falling pound and commodities. China slowdown, commodity bear market continues? Huge capital outflows in China? Where to? EM currencies falling heavy against the USD. U.S debt yielding too little to be attractive. Central banks repressing market volatility. Strength of USD a sign of a thirst for USD assets? Banks had been earning interest from money parked at the Fed so no need to lend. No big market upsets likely before the election. Trump loves debt, Clinton loves Goldman Sachs. Market tops usually happen on euphoria/greed rather than fear?
So evil central bankers, but a last gasp push into U.S stocks as they are now the only game in town?
Lizards, think lizards. Maybe Springrain was right all along?
Anyway, i'm off to Infowars and David Icke.com.
"I don't care what the people are thinking, i ain't drunk i'm just drinking"
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