Global institutional investors are making a bold bet on equities right now. December saw cash allocations drop another 0.4 percentage points to hit 3.3%—the lowest reading since tracking began back in the 1990s. That's a pretty dramatic shift: cash levels have declined 1.5 percentage points since April alone.

What does this tell us? Fund managers are essentially going all-in on stocks. The extreme cash squeeze suggests institutions see limited upside in holding dry powder. Whether that's overconfidence or justified conviction in the current market environment is the real question. Either way, it's a notable signal about where big money thinks opportunity lies right now.