The Market’s Real Worry Is Lack of Worry

The stock market’s coronavirus wobbles may be overdone given the robustness of the U.S. economy, so it is tempting to say that “the only thing to fear is fear itself.” What should be concerning, though, is that there is little of it.

On Tuesday, February’s survey of global fund managers conducted between Feb. 6 and 11 by Bank of America Merrill Lynch showed that cash now makes up only 4% of portfolios, the lowest since March 2013. Little “cash on the sidelines” is often a sign of investor confidence.

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