At a time when some of Wall Street's biggest whales are heading for the exits, retail investors are betting they're wrong.
However, fund managers are indicating declining cash positions and an overweight position on U.S. stocks that has reached its highest level since January 2015. The moves come as major equity indexes post a succession of record highs despite mixed economic data and another quarter of relatively weak earnings.
Cash positions for August fell to 5.4 percent of portfolios from July, a 0.4 percentage point drop, according to a Bank of America Merrill Lynch Fund Manager Survey released Tuesday. That came at the same time that managers adjusted their positions to a net 11 percent overweight, or above the normal portfolio allocation. (Traditionally, portfolios carry about 60 percent exposure to stocks.)
While the moves represent a significant change from a previously cautious position, they don't necessarily signal an exuberance that would indicate a market top, the firm said.