Bullish Sentiment Could Portend Stock Market Peak

By on March 25, 2013

The blog “The Short Side of Long” recently presented a series of charts from the Merrill Lynch Fund Managers Survey. The charts exhibit building euphoria which could indicate trouble ahead for the stock market.

One of the charts shows the cash levels held in funds and indicates there isn’t much buying power left to drive the market higher:

Fund+Manager’s+Cash+Weighting

Other charts at the site show fund managers commitment to bonds versus stocks, commodities weightings, and liquidity conditions. They all indicate investors should exercise caution about committing funds to equities at this juncture.

Source: The Short Side of Long

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