Fund Managers Are Dangerously Long Here

July 19, 2014 1:28 PM

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Fund Managers Are Dangerously Long Here

The Merrill Lynch Fund Manager’s Global Equity Weighting Index is at its second highest level in history, which means that funds are long out the wazoo.

At these levels, the market tends to revert as you can tell from the chart above posted by @ukarlewitz.

This does not necessarily mean that an end to the bull market is imminent, note that the shake out last Summer (in yellow) coincided with a pull back but not a trend break, but more that a washout is due in order to get this cohort less comfortable being so exposed to risk.

See More Analysis on this here: Fund Managers Are All In (The Short Side of Long)

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