Updates, Tips, & Finance News

Hi there,

We’re seeing some mixed signals in the market at the moment.

Some investors are really upbeat, while other investors are a little bit more pessimistic.

For example, cash as a percentage of assets among Charles Schwab Corp. clients have hit the lowest levels since 2004. In our opinion this may suggest that individual or retail investors are more invested as of late than they have in the past.

However, Morgan Stanley’s hedge fund clients have reduced their leverage to the lowest level this year. This could be a sign of reducing risk.

Our take on all of this is that it makes sense to be invested right now given the strong economy. However, at the same time it doesn’t make sense to be reaching for excessive risk at the moment.

Hope you have a great weekend!


Cash as a percentage of assets among Charles Schwab Corp. clients in August fell to 10.4 percent, matching the level in January that marked the lowest since 2004. This data point, along with the Morgan Stanley's hedge fund client leverage data was referenced from the Bloomberg article, "Blowout Quarter for Stocks Has Mom and Pop All In, Pros Cautious" by Bloomberg reporter Lu Wang. Round Investments LLC, dba Round, is an SEC registered investment advisor. Securities offered through Apex Clearing Corporation, Member FINRA, SIPC. The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered legal, investment or tax advice as it does not take into account the specific objectives, financial situation or particular needs of any specific person. Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Forecasts or projections of investment outcomes in investment plans are estimates only, based upon numerous assumptions about future capital markets returns and economic factors. As estimates, they are imprecise and hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Investing entails risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time. To view Round's Brochure, Terms of Use, Privacy Policy, and Disclosures go to www.investround.com