Reply To: The new recession is arriving?
Cash please
Equity investors in Europe are hanging on to unusually big cash piles, signalling growing unease over the market’s prospects.
They prefer keeping large sums of money parked until the protectionist war between Washington and Beijing clears up or Britain agrees on a Brexit deal, or data gives them some comfort that the global economy is not so in bad shape.
“There’s no reason to be 100 percent invested,” said Gilles Guibout, head of European equities at AXA Investment Managers, which manages a total of 759 billion euros ($872 billion) in various assets. “The bounce we’ve seen has no real foundations. We remain sceptical on any strong market recovery because many uncertainties have still no answer.”
JPMorgan, BlackRock, Allianz, Goldman Sachs and Schroder had also significantly increased their cash buffers to above average levels over the last few months.