Posted 1/12/2024, 3:38:00 PM
Record Money Fund Levels a Weak Reason to be Bullish on Stocks: High Rates and Valuations Historically Deter Shift from Cash
- Record $6 trillion in money market funds is "bullish propaganda" and won't likely boost stocks, per Ned Davis Research
- Interest rates and stock valuations are currently high, historically money doesn't shift from cash to stocks in this environment
- Past shifts out of money market funds into stocks happened when rates fell a lot and valuations were much lower
- Recent surge into money funds came from bank deposits, not investors selling stocks
- Reasons to be bullish on stocks, but record money fund levels is a "weak" one