News | 12.04.18
As Markets Wobble, Cash Is King
U.S. cash and cash equivalents are on track to be some of the best-performing assets in 2018, attracting money managers dealing with a rare synchronized downturn in stocks, commodities, and bond markets. Rising returns on cash make it more appealing for investors to move out of other investments. Fund managers' cash levels stood at 4.7 percent in November—slightly above the average of the past 10 years, but below the 5.1 percent levels reached in September and October, according to Bank of America Merrill Lynch. Analysts say the return of cash as a viable alternative signals a major change in investor sentiment and could pose a risk to the nearly 10-year bull market in stocks.
Read the full article on Wall Street Journal