The amount of cash on the sidelines remains at near panic levels

Money of zero maturity (T-Bills, cash in banks etc.) is equal to approximately 94% of the market value of the S&P 500.  The median percentage going back to 1990 has been 68%.  The elevated level of cash remains consistent with a market low – not a top and not a middle.  A movement of $100 billion out of MZM and into the market could translate into $1 trillion in increased stock market value.  It is entirely possible to see more than $100 billion flow back into equity mutual funds.  There was $134 billion withdrawn from equity mutual funds in 2011.  There has been approximately $8 billion withdrawn year to date (as of Feb.1, 2012). Jeb Terry, Sr. February 9, 2012

Aberdeen Investment Management – a guide service for micro-cap technology investment

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