Investors are stashing cash at record levels
“Meanwhile, Morningstar data on more than 1,000 funds shows that net cash allocation has hovered around three percent since late last year compared to a historical average of 2.7 percent. Wealthy investors are guilty of hoarding more than everybody else, with high net-worth individuals having more than a third of their portfolios in cash during the first three months of the year compared to less than a quarter by the end of last year.”
USAGOLD note: There could be multiple reasons for this developing trend. One, as reported in this article, is a quick big swing – in the space of a month – from greed to fear as registered on CNN’s Fear & Greed Index. Another could be the persistence of disinflation as the governing trend in the economy despite the Fed’s efforts to ignite inflation.
Repost from 5-29-2019