Last time I mentioned that global fund managers' cash reserves have dropped to 3.8%. On one hand, this shows that these fund managers are optimistic about the market, but on the other hand, it also indicates that there isn't enough cash to continue driving the market upward in the short term. Of course, this is all about the short term, and the referenced article explains it very clearly. Today, I came across new data about investors' asset allocation. A positive takeaway for the market is that 73% of assets are allocated to stocks, showing strong risk appetite, while the cash proportion is very low, only 6%, indicating that most funds are still actively operating without obvious signs of risk aversion. However, the downside is also clear. With 73% of assets in stocks and 17% in bonds, it shows that most funds are already invested in the market, leaving limited ammunition for further buying. Marginal buying power is constrained. Cash (6%) is the potential source of future buying power. When the cash proportion is too low, it means there’s not much capital available for bottom-fishing or increasing positions. In the short term, the market might be in a high-level zone. This kind of allocation structure is common during optimistic or even overheated market phases, as institutions increase stock allocations to avoid missing out on returns. But it also means that if the market experiences volatility or a pullback, the ability to replenish funds will be weak, and the fluctuations in risk assets could be more significant. This article is sponsored by Bitget ｜ @Bitget_zh