Bank of America is out with its latest fund manager survey and it's littered with red flags about a crowded stock market, particularly in US equities.
This chart might stand out the most as it indicates that cash allocations are the lowest since January 2002.
Combine that with IBKR's Chairman highlighting that retail is over-leveraged, meme stocks and Rosenberg capitulating and you have too many red flags for comfort.
"A downturn is a very big risk because margin balances have been growing very, very quickly,," Thomas Peterffy said yesterday.
For context, from January 2002 to July of that year, the S&P 500 fell 34%.
Here is another red flag from the consumer confidence survey, it shows the percentage of respondents who think stocks will be higher in the year ahead.
