Money markets are on track for a record $1.5 trillion inflow in 2023
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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
Source: Barchart, Bloomberg
Source: Porkopolis Economics