Fund Managers Boost Cash Reserves at War's Onset, Reaching Highest Level Since COVID

In the early stages of the recent conflict, fund managers significantly increased their cash holdings—the most since the onset of the COVID-19 pandemic—reflecting heightened risk aversion. The move underscores growing market unease, particularly in energy and defense sectors.

• Fund managers increased cash reserves at the onset of war by the most since the emergence of COVID-19.
• The level of cash buildup is the highest since the pandemic, indicating extreme risk aversion.
• Investor sentiment has deteriorated from last month but remains less severe than after Liberation Day in April 2025.
• Energy and defense sectors are experiencing heightened market attention due to geopolitical developments.
• Indicators like CL=F and ^VIX likely reflect rising volatility and safe-haven demand.
• AAPL remains a key equity presence amid broader market reassessments.