Asset Managers Hold Most Cash In 2 Years In "Least Believed Bull Market" Ever

Tyler Durden's picture

It seems David Tepper's "frigging" "dangerous" market is hitting home as asset managers have greatly rotated their portfolios to hold the most cash in 2 years. Of course, as BAML is quick to point out - this is great "wall of worry" climbing news, "it’s people taking money off the table and playing defensive. There is some inherent buying power." We have now seen almost 6 months of institutional selling and retail investor buying and Bloomberg does a great job rounding up the best market mantras for why it's different this time, and everything is fine.


BofA survey shows that asset manager cash levels are at 2 year highs... (the grey bars) - which of course they see as awesomely bullish


even though that has dipped BAML's risk and liquidity indicator negative for the first time in 2 years...


But there's no need to worry... (via Bloomberg)

Firstly - it's the weather...

Today’s bearish investors are tomorrow’s bulls, according to Chris Bouffard, chief investment officer at the Mutual Fund Store in Overland Park, Kansas. Sentiment will improve once the economy rebounds from a weather-related slowdown, he said.


“There is a solid foundation for an advancing market,” Bouffard said by phone on May 15. His firm oversees $9 billion. “We certainly see that cautious stance among pockets of our clients. It’s not because there is any impending sense of doom.

Then there's Bob Doll's Wall of Worry...

Walls of worry are everywhere,” Robert Doll, who helps oversee $118 billion as chief equity strategist at Nuveen Asset Management in Chicago, told Tom Keene and Michael McKee on Bloomberg Radio’s “Surveillance” on May 14. “This is the least believed bull market that I’ve ever seen. From here it’s earnings, it’s fundamentals, it’s can the economy grow? And my guess is the answer to that question is yes.”

Though some are a little skeptical...

People are a little bit concerned that something could be on the horizon,” Eric Schoenstein, co-manager of the $5.3 billion Jensen Quality Growth Fund in Portland, Oregon, said by phone on May 15, referring to a potential market crash similar to those that began in 2000 and 2007. “Investors are skittish and that probably makes sense because it lengthens the bull market.

But there is always the fact that

When you see this type of downdraft in very visible names, people’s risk averse attitude tends to take over,” Margie Patel, who oversees about $1.4 billion at Wells Capital Management in Boston, said by phone on May 15. “After the economic crisis, a lot of investors were traumatized. People are more looking at preserving their assets.”

So BTFD... just like institutional managers are not... because we need to keep the dream alive

We know where the flows have been...

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Arius's picture

yeah, muppets - but smart ones ... really!


It seems they are concerned on holding the cash rather than the return on their cash

Gaius Frakkin' Baltar's picture

I bought a $10 soaker hose this month to go along with the purchase of my hoe last month. Just doing what I can to increase summer sales!

dontgoforit's picture

It's gonna' be hellish when this wave breaks.

BeetleBailey's picture

An Elliot "Rogue" wave son.....swamping the muppets....

Grande Tetons's picture

I was not smart enough to buy in May, 2009. I am not stupid enough to buy in May, 2014. 

Pretty much sums it up. 

BeetleBailey's picture

..and you're FAR from alone....

I did..but also started nibbling the hedged....but long biased....profit taking along the way....this shit-show starring excrement worldwide is going to lead to;








Bemused Observer's picture

I did buy in May 2009. Sold all of it after I nearly tripled my money, and went away happy. But I wouldn't touch THIS market with somebody ELSE'S money...

Dr. Engali's picture

Looks like old yeller needs some negative rates to force people into the market.

The Most Interesting Frog in the World's picture

Negative rates, Obama phones, Obama cars, Obama houses...  we are just getting started...


God Bless United Socialist States of America!!!

BeetleBailey's picture

FuckbamaFood, FuckbamaDivision, Fuckbama's NASTY fucking wife, Fuckbama's STUPID FUCKING POLICIES, Fuckbama's CUNTS for an "administration"....

Fuckabama.....THEE cunt of the century....can't wait to see the stupid pricks that "support" him get hammered after all his shit comes out in the wash....



dontgoforit's picture

OK, Pvt. Bailey - tell us how you really feel.  (Not that I don't agree with it.)

BeetleBailey's picture


when you're done, maggot...step on ants! BE PRODUCTIVE SOLDIER!!!!!



dontgoforit's picture

I can still give you 50 good ones in 60 seconds, but damn shoulder's killing me...

TheRedScourge's picture

It will all be blamed on the Repubs, and the cursing from folks like yourself will be stripped of the context of what has caused it and used as evidence that their opponents are all just angry incoherent racists. You have the wrong strategy, rather than just get mad and create ammo, you need to let go and try to find a way to profit off it.

LawsofPhysics's picture

When do those "MyIRAs" go on sale?

Can't wait to front run the herd on that one...



AdvancingTime's picture

We may soon be forced to face our economic Armageddon. The forces that have driven stock markets ever-higher and upward may be beginning to wane. Many markets became distorted years ago when QE and super low interest rates hit the economy in an effort to lessen many of the missteps of recent years. 

This has been more helpful in holding up the underlying value of assets and derivatives it now appears than helping to repair a wounded economy. QE has up to now stopped an implosion of derivatives including the resulting contagion and shock that would have spread throughout the financial system. Unfortunately the economy has not fared as well as these asset prices and in many ways these policies have harmed Main Street. More on this subject in the article below.

Arius's picture

QE helped immensily ... any two cents brain economist could tell you that ...

Fuh Querada's picture

have you considered fucking off and taking your ridiculous blog pimps with you?

dontgoforit's picture

QE delayed the inevitable and helped the bankers, corporations and power-brokers.  I suppose the idea was that that would also help the average Joe, but the average Joe is now so broke he can't pay attention.

Cthonic's picture

Risible.  63% of surveyed investors think global economy is currently in mid-cycle, while a dropping % (from '12 peak) think we are late cycle.  Apparently we've been traveling backwards in economic time...

Life of Illusion's picture


Dont miss the financial stability show today.

Financial Stability Oversight Council (FSOC) Hosts Public Conference on Asset Management on Monday, May 19 5/13/2014 Page Content *MEDIA ADVISORY*?




WASHINGTON – As previously announced, in order to help inform the ongoing assessment by the Financial Stability Oversight Council (Council) of risks to U.S. financial stability, the Council will host a conference on the asset management industry and its activities on May 19, 2014. The Council welcomes the opportunity to hear directly from the industry and other stakeholders on topics related to investment risk management, potential risks across the broader financial system, and operational issues and resolvability. Each panel discussion will be moderated by a senior official of a Council member agency.

This event is open to the press. A live webcast of the event will be available at

AccreditedEYE's picture

I'm not selling till Jim Paulsen tells me to. Always nails it. Good enough for me. (Must be the Bernake Beard thing..)

The Most Interesting Frog in the World's picture

In a communist centrally planned society there should be no need to go to cash.

Chuck Knoblauch's picture

Least Believed? LOL! I love that line!

JRobby's picture
"Least Believed Bull Market" Ever

Hilarious. Servers silently trading in the background. They don't have a sense of humor Sarah Conner.