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More U.S. Investors are Holding Cash: Does it Mean a Shaky Dow Jones is Still Very Weak?

Joseph Young
Updated

From CCN.com: Since January 3, the Dow Jones has recovered by 8.9 percent from 22,868 points to 24,706 points, fueled by the increasing optimism towards China-U.S. trade talks.

However, WSJ has reported that the cash holdings of investors in the U.S. are growing at an unprecedented rate, citing the data provided by Thomson Reuters Lipper.

Why Investors are Seeking For Cash and What it Means to the Dow Jones

In a bear market or a correction, cash often remains as the strongest performing asset class.

In December 2018, the Nasdaq Composite briefly declined by 20 percent from its all-time high to gain a bear market status. The Dow Jones was still 2 percent clear but it was a few hundred points away from dropping by 20 percent from its yearly high.

Read the full story on CCN.com

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