We have noticed a number of recurring comments in recent months which all add up to the same underlying theme: extreme investor caution. This is consistent with the data presented in the chart below which shows that global fund management cash levels are currently at multi-year highs. This highlights just how bearish the global financial community is at present. We can’t remember a time in recent years beyond the aftermath of the GFC when the consensus was so negative. All other things being equal, these elevated global institutional cash levels suggest to us that markets are now arguably sensitive to any good news, and insensitive to any bad news. We see this as an opportunity for long term stock pickers. In this article we highlight some key action points to ensure you profit from current investor caution.