⚠️US money market fund assets jumped to a record of $8.2 TRILLION.
This comes as people expect the Fed to pause rate hikes for a few months. We have to remember, this is not money on the sidelines. Moreover, most of this cash has never been in and never will go to stocks. Last but not least, while the ABSOLUTE number is at record high, the RELATIVE number (cash as a percentage of total assets) is near record low. Source: Global Markets Investor, Goldman Sachs
An important remainder ahead of Trump inauguration:
"Don't let your politics get in the way of your investing. The market finds a way forward, regardless of who is in power. The market soared under both Trump and Biden, as it has under most presidents" - Peter Mallouk
History has been made again in stocks:
Over 68% of the S&P 500 stocks have closed higher for 5 consecutive days, matching all previous records since 1928. If the same occurrence happens on Tuesday, it will mark a new record streak. In other words, the market's breadth has significantly improved. The last 2 times when such a streak occurred were in January and June 2019 which resulted in more upside in stocks. A similar trend was seen in September 2009 which resulted in the S&P 500 rallying 8% in the subsequent 3 months. Can bulls capitalize on this momentum? Source: The Kobeissi Letter
Goldman Sachs CEO David Solomon says that AI can draft 95% of an S1 IPO prospectus “in minutes” (a job that used to require a 6-person team multiple weeks).
“The last 5% now matters because the rest is now a commodity,” per Solomon. Source: Bearly AI on X
President Trump official portrait is out.
Between 2017 and 2025, the body language looks different...
Bullish sentiment is through the roof: US households, mutual funds, pension funds, and foreign investors' financial asset allocations in US stocks hit a record 54%.
Since the 2009 low, this percentage has DOUBLED, exceeding the 2000 Dot-Com Bubble peak of 51%. On the other hand, allocation to debt instruments like bonds has dropped by 9 percentage points to an all-time low of 18%. At the same time, cash allocation has fallen to 13%, near the lowest on record. Investors are all-in on stocks.
The Market Cap of the largest 50 stocks relative to GDP is at 110%, the highest level in history, surpassing the peak of the Dot Com Bubble and the Global Financial Crisis...
Source: Barchart
BREAKING: Donald Trump to designate crypto as a national priority, including the consideration of a "national Bitcoin stockpile"
— Bloomberg
