Mutual Funds Have No More Cash

Posted on 09. Mar, 2010 by Founder in Blog

This came out from Bloomberg the other day showing that Mutual Funds are now runnning out of cash to invest. See a part of the article here:

Equity mutual funds are burning through cash at the fastest rate in 18 years, leaving them with the smallest reserves since 2007 in a sign that gains for the Standard & Poor’s 500 Index may slow.

Cash dropped to 3.6 percent of assets from 5.7 percent in January 2009, leaving managers with $172 billion in the quickest decrease since 1991, Investment Company Institute datashow. The last time stock managers held such a small proportion was September 2007, a month before the S&P 500 began a 57 percent drop, according to data compiled by Bloomberg.

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