everybody is holding on to cash pay 1% interest or less. especially USD..why hold the USD. what will people do when the USD value has it's day of reckoning. US debt is over 1 trillion. 1 year deficit is 1 trillion. inflation happens suddenly in days. i'm surprised USD is still holding onto unrecord gains from October2008. gains in currency havent' seen in decades. everybody will be running back to hard assets like oil, real estate and dividend paying stocks once the realization of holding cash is futile in the long run.
And your point is what exactly? what should a us investor with his assets in usd and spending usd do with his cash? euro? sterling? those aren't exactly problem free zones.
with the way that the financial system works..cash is just a piece of paper. really in fiat money. that is the portfolio managers job to allocate cash or capital for most appreciation in the long run. in the long run cash perform less than hard assets and stocks. don't expect people to hold on to cash forever. all currencies will face inflation or devaluation of purchasing power over time.
Unless a portfolio manager believes that there's a great deal of risk in the next six-nine month. Allocation to cash would make sense if he wants to sit out the draw down and buy at a more discounted price. What makes you think that being cash heavy now is being cash heavy always?