Investors are stashing cash at record levels

SafeHaven/Alex Kimani

photo of large stack of bundled $100 bills“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

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