Mutual Fund Cash Levels At Historic Lows

The following is from Jesse. A very good article point to the fact that mutual funds seem to be "all in" on the market like a poker player betting on the river card and completely bluffing waiting to lose everything his got. It will to interesting to watch how the markets play out.

03 MARCH 2010

Mutual Fund Cash Levels Near Historic Lows

The mutual funds, and those who give them their money to invest, look to be about 'all in' with regard to US equities.

As I recall, the bond funds have decent cash levels, and the piling into short term Treasuries at negative interest rates is certainly a phenomenon.

The hypocrisy and venality of the US financial sector knows no bounds, and they seem to have bought off the guardians of he public trust. The US government desperately needs to sustain confidence and the aura of recovery. They do not need a falling stock market to say the least. And yet, they have to continue funding record levels of debt issuance every month.

A lot of demand for funds, and many of the players close to flat busted.

It may be an interesting year.