Members are deeply concerned about the gap between Wall Street and Main Street and are therefore acting defensively to keep cash balances high. While members are conservatively positioned, as experienced entrepreneurs, they are also preparing to pounce on opportunities wherever they are. Having cash is the asymmetry of having protection on the downside but waiting for opportunities on the upside.
We are in the greatest period of unknown as they perceive it. They want to be able to weather the storm for longer — but what they’re really doing is taking risky assets off the table. They are still open for business but the bar for investing is much higher.
Meanwhile, the stock market just keeps churning out gains, with major indexes bouncing around record highs. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite were all moving higher in trading on 26 August.