Individual investors’ cash levels are low: Retail investors’ allocation to cash was 16.5% in August, one of the lowest readings in 4 years. This percentage has fallen -3.2 points since April. By comparison, the long-term average has been ~22% since 1987. Individual investors now hold 67.3% in stocks, just below the June 2024 multi-year peak of 70.5%. They also hold 16.2% of their capital in bonds, roughly in-line with readings over the last 4 years. Retail investors are all-in on this market.(The Kobeissi Letter)