"U.S. households' equity holdings at the end of March equaled 51.5% of their total financial assets, according to Ned Davis Research Group. That's significantly above the mean of 44% since 1952, says Davis, the company's senior investment strategist and founder."
"Moreover, household cash allocation was 25%, lower than the 32% mean. So, investors have less dry powder than they do on average. Allocations are close to levels in the past when the market was overbought, he adds: "When investors are pretty fully invested in stocks, the returns looking out 10 years are generally poor." There is a strong correlation between household asset-allocation levels and long-term equity returns, according to NDR research."
So, much for the "cash on the sidelines" or investor's lack of enthusiasm for equities.