neutral
Recently
BofA cash balance signal flashes caution for global equities
Bank of America data shows institutional cash near 3.
Institutional cash holdings have dropped to roughly 3.8% of assets, the lowest in a decade, according to Bank of America’s latest fund manager data. Historically, sub-4% cash has preceded modest equity pullbacks as positioning turns crowded and risk buffers thin. With policy uncertainty elevated and earnings dispersion widening, strategists warn that even small macro surprises can amplify drawdowns.
Portfolio managers are assessing hedge ratios, trimming beta exposure, and rotating toward higher-quality balance sheets to manage downside while remaining engaged in markets with selective risk.