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Average institutional equity fund now holding 4% in cash
“The average institutional equity fund, which includes mutual funds and capital ETFs, Is now holding a relatively low 4% of its portfolio in cash, according to Bank of America, which says a figure any lower would be a signal to sell, while an increase to 5% would indicate a buy.” (Barron’s April 26, 2021)
“Buy? Sell?” / Commentary from BOA is obviously a subjective opinion.
Perhaps it is saying that there is not many stocks are attractive to buy at the current valuation. The 4% cash is common to hold in active managed mutual funds, perhaps ETFs may hold less.
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