Testing the Equity Mutual Fund Liquidity Ratio
May 6, 2022 - Mutual/Hedge Funds, Sentiment Indicators
A reader requested evaluation of the Fosback Index and its Ned Davis variant. The creators of these indicators argue that a high (low) ratio of cash equivalents to assets among equity mutual funds indicates strong (weak) potential demand for stocks. The Investment Company Institute (ICI) surveys mutual fund managers monthly (with a lag of about a month)… Keep Reading