Fund manager (FM) cash levels jumped sharply from 3.4% last month (and 3.2% record low in January) to 4.3% in March. The biggest jump since March 2020, back in the COVID period – the Bull & Bear indicator, which triggered a contrarian “sell” signal in December, is looking on point this morning. Also in the March survey, FM sentiment, based on cash levels, equity allocations and global growth expectations, dropped to a 6-month low, still well above the April’25 Liberation Day low, although with the Dow plunging around 770 points overnight, it would be lower today!
Not surprisingly, individual investor sentiment has also turned sharply lower, and while it’s not at levels that have flashed “Buy Signals” post-COVID, it’s getting there fast. However, when things feel uncomfortable its often good to remember one of Warren Buffett’s famous sayings for successful investing: “Be fearful when others are greedy, and greedy when others are fearful”
- Bottom line: We believe members should be considering when/how to increase market exposure as stocks/sentiment fall.
