Investor Risk Appetite Wanes
By John Del Vecchio and Brad Lamensdorf
As a sign a big bounce could be coming, investors have little appetite for risk. As the chart below from BofA Global Research shows, the percentage of investors taking higher than normal risks has plunged to nearly 2009 levels and are among the lowest this century.
Meanwhile, the average cash position of fund managers has hit the highest level since the 9/11 terror attacks.
While the market volatility may be far from over and lower prices could be seen in the future, the market sentiment is extremely bearish and indicators are pressed to the floor.
A bear market rally is overdue.
To learn more about how these indicators can help manage risk in your portfolio, book a call with Brad. You may book a call here.
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Lamensdorf Market Timing Report is a publication intended to give analytical research to the investment community. Lamensdorf Market Timing Report is not rendering investment advice based on investment portfolios and is not registered as an investment advisor in any jurisdiction. Information included in this report is derived from many sources believed to be reliable but no representation is made that it is accurate or complete, or that errors, if discovered, will be corrected. The authors of this report have not audited the financial statements of the companies discussed and do not represent that they are serving as independent public accountants with respect to them. They have not audited the statements and therefore do not express an opinion on them. The authors have also not conducted a thorough review of the financial statements as defined by standards established by the AICPA.
This report is not intended, and shall not constitute, and nothing herein should be construed as, an offer to sell or a solicitation of an offer to buy any securities referred to in this report, or a “buy” or “sell” recommendation. Rather, this research is intended to identify issues portfolio managers should be aware of for them to assess their own opinion of positive or negative potential. The LMTR newsletter is NOT affiliated with any ETF’s. Active Alts is affiliated with Lamensdorf Market Timing Report. While LMTR uses charts from SentimenTrader, they do not have a financial arrangement with SentimenTrader Past performance is not indicative of future results.