Dan Sullivan Sticks With Cash

By on September 9, 2010

Dan Sullivan, editor of The Chartist, acknowledges that investors are being barraged with bearish economic news and sentiment indicators show they’ve given up stocks for bonds, however, he still believes money market funds are still the best place to be for now.

It was just reported [last week] that the latest sentiment readings from the American Association of Individual Investors shows only 21% of investors are bullish, which is the lowest reading since the March 2009 lows. Again, from a contrarian point of view, these events are usually seen at market bottoms and not at tops.

The bottom line is that there is approximately $9 trillion of cash on the sidelines earning almost nothing, and when the stock market resumes its long-term up trend there will be an ample supply of cash to send stock prices higher.

Source: Moneyshow.com

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