Equity investors under-allocated? no, no and ah, nope

Great triptych chart courtesy of Lance Roberts today that answers three misleading statements heavily asserted by the risk-selling hoards: 1. that investors are afraid and under-allocated to equities, 2. that investors are afraid and over-allocated to bonds, 3. that investors are afraid and holding an overweight in cash. The answers as shown below are clearly: no, no and no.

In fact equity market participants (well at least the small percentage who are not just HFT pingers but actually hold positions for not just microseconds, but overnight and longer!) have never been more risk-exposed and confident that prices can only higher as expressed by the highest margin use and lowest ability to hold through any price declines ever on record, as shown here.

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