Equity mutual funds haven't burned through cash this fast since 1991, according to a report
published yesterday by Bloomberg
/. Cash reserves dropped from 5.7 percent of assets in January 2009 to 3.6 percent today, leaving funds with the smallest reserves since 2007.
As a result, some worry that gains for the S&P 500 may slow.
Bloomberg spoke with several investment executives to gauge their views on the potential trend, including Parnassus
president Jerome Dodson
, Janney Montgomery
chief investment strategist Mark Luschini
, Security Global Investors
' Mark Bronzo
, and BNY Mellon Wealth Management
CIO Leo Grohowski
Bloomberg also analyzed the results of research done by Birinyi Associates Inc.
, as well as Bloomberg's original research.
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