"Superannuation funds, businesses and ordinary investors are all holding more than normal in cash. At some point that extra cash has to be put to work. Certainly more money is drifting into the equity markets, but more will need to follow in coming months."
Why will this money NEED to follow? I think a lot of investors have lost their appetite for risk and are still happy with cash until the future becomes a little clearer. I think the "money NEEDS to follow" so that profits can be locked in from the rise from March 2009. Trouble is with so much money lost due to GFC1, then it is hard to sell out at the top if there is no buyers to sell to. Hence the market can't correct until new punters are enticed to buy.
