From Pragmatic Capitalism:

The latest Merrill Lynch Fund Managers Survey showed the highest reading of bullishness ever. They report that fund managers have a net 67% overweight position in equities. This is the highest level they have ever recorded. Gary Baker of Merrill writes:

"The February FMS is one of the most bullish in years. Institutions have record equity and commodity overweights, very low cash levels and the strongest risk appetite since Jan '06. Surging inflation expectations show we are no longer in a Goldilocks environment and a meaningful tactical correction in risk assets could be caused by a jump in interest rates or weaker U.S. growth."

Allocations are currently excessively bullish and consistent with past corrections...

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