How much cash is available to invest?
Posted: Thu Dec 17, 2020 2:14 pm
Update of cash levels in money market funds.
There is $3941.9B in institutional and retail money market funds as of November -- lower than the recent highest level of $4462.4B in May, but still up 22.1% y/y. Notably, current cash levels are also higher than before the pandemic-related shutdown (e.g., $3242.6B in February).
Fears of the pandemic, and the stock market crash of February and March of this year, pushed cash levels to their historically highest level in May of this year. There is plenty of cash on the sideline that could be put to work in long-duration assets over the long run, considering interest rates are close to 0% on cash.
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Our Sweet 16 is up more than 100% since April 10, primarily because of less FEAR. I expect them to report solid Q4 results and provide more upbeat guidance for 2021. Hopefully, this brings more money off the sidelines + some rotation into the sector.
There is $3941.9B in institutional and retail money market funds as of November -- lower than the recent highest level of $4462.4B in May, but still up 22.1% y/y. Notably, current cash levels are also higher than before the pandemic-related shutdown (e.g., $3242.6B in February).
Fears of the pandemic, and the stock market crash of February and March of this year, pushed cash levels to their historically highest level in May of this year. There is plenty of cash on the sideline that could be put to work in long-duration assets over the long run, considering interest rates are close to 0% on cash.
---------------------
Our Sweet 16 is up more than 100% since April 10, primarily because of less FEAR. I expect them to report solid Q4 results and provide more upbeat guidance for 2021. Hopefully, this brings more money off the sidelines + some rotation into the sector.