Institutional investors have been net sellers of stocks since December, a bullish signal for the stock market, according to Fundstrat's Tom Lee.
"This [cash] should be viewed as a source of firepower for future buying, hence cash on the sidelines could fuel further upside," Lee said.A contrarian bullish signal is flashing for the stock market as institutional investors continue to sell equities and raise cash, according toIn a note on Sunday, Lee highlighted that since December, institutions have been net sellers of stocks and now have their highest cash balances since June of last year.
Rising cash balances should be viewed as a source of firepower for the future buying of stocks, "hence, cash on the sidelines could fuel further upside," Lee said. Lee expects institutions have been more cautious in recent months for a number of reasons, including high valuations,But Lee thinks a broad market correction - that institutional investors are probably worried about - isn't likely,"We believe the risk of a broader correction has diminished sharply given the multiple sell-offs seen since the start of 2021," Lee said.
For Fundstrat *everything is bullish. Even the - sign.
(lol... Fundstrat....)