Thursday, September 25, 2008

Cash Levels in Money Market Funds

Commenter Howard Bernstein pointed me to this chart of mutual fund cash levels. It comes to us courtesy of Navellier Research and Ned Davis Research.

The chart shows the ratio of money market fund assets to the market value of the S&P 500. The ratio is now nearly as high as it was in 1982, the start of the great 1982-2000 bull market. Apparently investors are showing the greatest preference for safety vs. speculation in 25 years. 

Needless to say, this is another very bullish indication. 


Anonymous said...

Today could be a pivotal day. Market patterns are bullish (I am long with stop below low of day).

All we need is something -some catalyst - and this market is gonna fly.

We could be at 1265 by the end of the week.

Anonymous said...

Hello Carl,

I like Your optimism, and I think we will rise a few days and finally finish this first leg down in mid october.
And then You will get Your sharp bearmarket rally into mid 2009, followed by a sharp drop into 2010.
Where are the parallels today to 1982 if You look at Price-Earnings-ratios or P/B ratios or dividends?

Regards from Germany