iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
19,528 Blog Posts

Investors Are Cashed Up and Assed Out

Anyone over the age of 35 remembers the market crashes of yesteryear — the malevolent crashes of a comical nature that ruined so many people and their households. Kids getting tossed out of their lambos — because they’ve been repossessed. Wives being told her Hermes collection needed to be sold on Ebay, in order to pay for the boat. Husbands being told the boat had to go in order to pay for the mortgage. The bank telling everyone to GTFO because the house was being foreclosed and they intended to sell it.

It was bad.

The recent downturn forced many people my age and older to cash up. Now, according to Bank of America, those same people are assed out.

source: CNBC

Bank of America’s Merrill Lynch’s latest fund manager survey, which gauges where global pros are positioning, showed the biggest net overweight position in cash since January 2009, just two months before the market bottomed and set up the longest bull run in Wall Street history.

Sentiment moving to extremes has been a reliable contrarian indicator for market historically. The January stock market rally coincided with a cash allocation of 4.8 percent, which is above the 4.5 percent threshold that Bank of America considers a bullish sign.

Markets are spinning higher and nothing can stop it. Oil is up. Junk bonds are up. Industrials are leading the way, optimistic about a China deal.

I have no warnings for you and only happy tidings. Go correlate with the market and make some money.

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6 comments

  1. edge

    Moving back in. Bought YINN SOXL TQQQ

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    • edge

      You forgot to mention the fat dividend checks. As long as nothing scary happens, we’re good to go.

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      • it is showtime

        Yeah right back up to peak-equity bubble levels. You and the writer are forgetting that in your logic. You’re good to go, until a normalization which you can’t avoid.
        roaring20s to >
        05-06housing to >
        (manipulation and programming of the indexes doesn’t exempt you)
        (and. you will look like the prototypical imp in history. clinging to his assumed wealth prospect)

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        • edge

          Ha. If the market breaks, I’ll be short ASAP. In the meantime make money where it’s being made.

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  2. chumpdaddy

    In all deference to your superior trading instincts and intellect, Mr. Fly, it is impossible for stocks to go up without something stopping them for a while. Which doesn’t mean they are not going up tomorrow, again.

    I remember looking at a slightly used BMW about 10 years ago and the keys still had a “Salomon Brothers” keyfob on it.

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  3. narwhal

    What is Bank O Merica talking about, longest bull run in history? How about the market STFU from 1975 to 2000? This is not unusual children.

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