RED FLAG: INSTITUTIONAL CASH HITS HISTORIC LOW (3.2%)
Are markets overheating? The latest Bank of America (BofA) Global Fund Manager Survey for Jan 2026 screams "YES".
Institutional investors are currently "Hyper-Bullish", but the data reveals a fragile foundation.
Key Stats:
Cash Levels: Dropped to 3.2% (Lowest in history). Managers are fully deployed.
Hedging: Protection against a market drop is at its lowest since 2018.
Sentiment: Bull & Bear Indicator at 9.4 (Extreme Greed).
** The Implication:**
With cash buffers gone, funds have no "dry powder" to buy dips. Any external shock could trigger forced selling. This mirrors the setup of late 2021.
Takeaway: While the trend is up, the risk/reward ratio is deteriorating. Consider taking profits or increasing your own stablecoin reserves. Don't be the exit liquidity for institutions. 📉
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