Debunking the Myth of 'Cash on the Sidelines' Ready to Enter Market
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The idea of "cash on the sidelines" ready to enter the market is a myth - there is always a buyer for every seller in the markets.
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Money market balances have surged, but these funds are used for non-investing purposes like payroll, operations, etc.
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Both retail and professional investors are already highly allocated to equities, leaving little buying power on the "sidelines."
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Since the financial crisis, corporate cash balances have primarily been used for share buybacks rather than investing in growth.
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Market euphoria has led buyers to keep bidding up prices higher, but at some point psychology could shift, leading to a rush of sellers.