International fund manager's cash balance is the highest in 20 years, '15% proportion'

The cash balance of international fund managers rose to the highest level in 20 years, reaching a '15% weight' in their portfolios.
"Cash is now becoming a viable asset class because of what's happening with interest rates," said Paul Nolt of Kingsview Investment Management. he told Reuters.
Regarding his high holdings on cash, he said, "It gives me a chance to look around the financial markets in a few months and relocate if the markets and the economy look better."
The Bofah International Survey made a comment on the 16th that the average cash balance of fund managers in September was 6.1%, the highest level in more than 20 years.
“Since the outbreak of the pandemic, the assets of money market funds have risen to $4.44 trillion as of last month and are hovering around the May 2020 peak of $4.67 trillion,” said Refinitive Rilfer, the organization's director.
"Investors are expected to implement another jumbo rate hike at the Fed meeting next week, following this week's CPI report, which was hotter than expected by the central bank," Reuters reported.
Disadvantages of increasing the proportion of cash include the possibility of missing an opportunity in the face of a sudden reversal in the price of stocks and bonds, and the fact that the value of cash has fallen due to strong inflation with an average annual increase of 8.3% in the CPI.
“Certainly, they are losing purchasing power as inflation runs above 8%, but they are taking money off the table at a dangerous time for the stock market,” said Peter Tuzu, president of Chase Investment Consulting. ' he told Reuters.
Mark Hackett, director of investment research at Nationwide, said: “Extreme levels of cash holdings are considered by investors to be a contradictory indicator that bodes well for equities. "We believe stocks can remain volatile in the short term, but we are more optimistic about our outlook for the stock over the next six months," he told Reuters.

The World Bank's 'Is a Global Recession Imminent' report said about interest rate hikes, "An additional 2 percentage points will be needed to reach the inflation target of each country's central bank." It is slowing down and the growth rate of GDP per capita is -0.4%, which is a theoretical economic recession.”

Among the indicators for the second quarter (April to June) of Statistics Korea, the manufacturing inventory index increase rate was 18.0%, the highest in 26 years since the 22.0% index in the second quarter of 1996 just before the financial crisis.

The Korea Chamber of Commerce and Industry (KCCI) announced on the 16th that the inventory growth rate should be viewed as a full-fledged economic downturn rather than a temporary adjustment due to external variables.

The World Bank report pointed out that the “simultaneous economic slowdown in the three major economic axes of the world, the United States, China, and Europe, can cause the global economy to fall into recession even with a small shock.”