U.S. mutual funds investing in equities, with the lowest percentage of its assets in cash from 2007 onwards. In January, the share of the cache has fallen to 3.6 percent from 5.7 percent a year earlier, according to the Investment Company Institute. This is the biggest drop of the indicator in the past 18 years. Currently, managers have available funds in the amount of 172 billion dollars. The last time the managers behaved as a small percentage of cash was in September 2007, a month before the broader index S & P 500 to start 57% decline. The index has lost an average of 16% over the last three times, in which managers are beginning to increase their reserves of cash. The reason for this is that the cache is often due to increased sales. In this situation, when reserves have reached the opposite pole, it is assumed that the growth potential has been exhausted. According to the investment company Parnassus Investments growth stock will fall after last year S & P 500 rose by 23%. For the past 12 months did it rose by 67 percent in a remarkable year for U.S. exchanges. “This is not a red semaphore, but it is flashing yellow, which warns that the strongest part of the recovery of the market probably is over,” said Jerome Dodson, managing 3.6 billion dollars for Parnassus Investments. According to him this year S & P 500 will rise by between 6% and 9%. “There is only so much buying power of the market,” he said.
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