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What do the mutual fund cash ratio and short interest have in common. A. They both indicate demand for stocks will be higher in the
What do the mutual fund cash ratio and short interest have in common.
A. They both indicate demand for stocks will be higher in the future when the cash must be invested and the shorts covered.
B.They are both bearish in the shortterm because mutual fund managers and short sellers expect prices to fall.
C. They are opposite indicators because high mutual fund cash means investors are not withdrawing funds, but short sellers are pessimistic because they expect prices to fall.
D. Both A and B are correct.
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