MUTUAL FUND CASH TO ASSET RATIO

Another email to friend this time KJ: (background this ratio was near 12% at 1980 bottom and has been near 4% recently...a historic LOW)

I have never seen it shown like( a graph) that but was aware of the 4% reading for the past several years.

I can only think it is the fed liquidity sliming into markets, if that ever shifts down NOTHING will hold the market up from an all out collapse.

And you see where it was at beginning of GREAT BULL> is why I say extremes are turned on their heads here and know what we are in.

The key is IF, mutual funds EVER get the liquidation that usually occurs at BOTTOMS, obviously the cash isn't enough to cover then stocks gets sold to raise cash yada yada, bad self fulfilling domino effect feeds on itself cycle to bottom.

Now, saying that, it surely has been at 4% or low for sometime, not sure if it's anything to worry about (immediately), or the stat is lulling us to sleep.

But EVIDENT from th egraph is that it always goes from one extreme to the other and back again.

D