Cash at 18-Year High Makes Stocks a Buy at Leuthold |

Cash at 18-Year High Makes Stocks a Buy at Leuthold

Im long the fund…not doing any of us any good

By Eric Martin and Michael Tsang

Dec. 29 (Bloomberg) — There’s more cash available to buy shares than
at any time in almost two decades, a sign to some of the most
successful investors that equities will rebound after the worst year
for U.S. stocks since the Great Depression.

The $8.85 trillion held in cash, bank deposits and money- market funds
is equal to 74 percent of the market value of U.S. companies, the
highest ratio since 1990, according to Federal Reserve data compiled
by Leuthold Group and Bloomberg.

Leuthold, Invesco Aim Advisors Inc., Hennessy Advisors Inc. and
BlackRock Inc., which together oversee almost $1.7 trillion, say
that’s a sign the Standard & Poor’s 500 Index will rise after $1
trillion in credit losses sent the benchmark index for American
equities to the biggest annual drop since 1931. The eight previous
times that cash peaked compared with the market’s capitalization the
S&P 500 rose an average 24 percent in six months, data compiled by
Bloomberg show.

http://www.bloomberg.com/apps/news?pid=20601213&sid=ahP6Cp0P5m2k&refer=home

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