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Cash Levels Crash To Historic Lows – Another Scary Red Flag?

The following article discusses this issue in greater detail…..

Investors are running out of cash — and that’s terrible news for the stock market

It’s worth noting, however, that not every Wall Street bank is sounding the alarm over low cash levels. Goldman Sachs has been a notable holdout over the past few months, even going as far as to cite “normal” cash holdings as a reason the bull market can continue for longer. Their data finds that investors seeking returns are holding cash levels that equal 3.3% of mutual fund assets, in line with recent history.

We believe it is important to consider the above as just another data point. Meaningless in itself, but powerful when combined with others. Particularly, incredibly high valuation levels and record breaking bullish sentiment. Something we have covered on this blog extensively in the past.

That is to say, what can possibly go wrong…..right?

Well, in terms of the stock market, the situation is incredibly complex. If you would like to find out what happens next, based on our mathematical and timing work, please Click Here.