Cash poor investors in September reduced their cash cushion. The latest AAII survey shows that individual investors in September reduced their cash cushion by quite a bit. They’re now holding only 14.6% of their portfolios in liquid instruments, among the lowest in 30 years.
They’re not the only ones. Looking at other market players, it’s a consistent theme. Among mutual fund managers, retail investors, Rydex mutual fund timers, the AAII folks, and pension funds, the average cash balance is ticking near all-time lows.