Taps Coogan – July 22nd, 2022
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The following chart, via Callum Thomas, shows reported cash balances based on Bank of America’s well known Global Fund Manager Survey.
Fund managers are reporting their largest relative cash position since 2001 despite deeply negative real returns on cash owing to high inflation. They’re holding more cash (on a relative basis) than at the worst part of the Global Financial Crisis when some of the world’s largest financial institutions were failing.
To managers’ credit, that cash has been one of the least bad trades this year as the 60/40 portfolio is on track for its worst year ever.
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