Posted 1/11/2024, 6:38:00 PM
Don't Bank on $6 Trillion in Money Funds to Lift Stocks: Analyst
- Don't expect the $6 trillion in money-market funds to boost stocks, says Joseph Kalish of Ned Davis Research
- Historical data shows declines in money-market assets when stocks rise, as investors move into higher-yielding assets
- Money-market funds increased by $1.4 trillion over the past year
- Key conditions for investors to move from cash to stocks aren't present now with high stock prices and money-market yields over 5%
- Falling 10-year Treasury yields in late 2023 could catalyze a stock rally, but cash piles aren't a strong bullish indicator