If you think about it for a moment, you'll see that the "cash on the sidelines" almost never leaves. As soon as someone's cash has been turned into a stock purchase, the seller now has the cash "on his sidelines" again. Only when the cash is removed from the marketplace will "cash on the sidelines" decrease... like to buy real estate or something.
Of course there's a record amount of cash on the sidelines. Have you seen how fast they're printing it? The record amount will only get larger, it's just too bad that this amount of cash buys less goods every month.
If you think about it for a moment, you'll see that the "cash on the sidelines" almost never leaves. As soon as someone's cash has been turned into a stock purchase, the seller now has the cash "on his sidelines" again. ________________________________________ Gnome, That is a classic quote. You outta send that into the stock traders almanac.
The effect of Fed rate cuts is being felt across financial markets and that's a good sign to stimulate economy. Now you know why Feds cut rates? There won't be any place left to park cash as these money market fund rates will decline in few weeks gradually. The Cash has to be invested in age old asset classes- 1.REAL ESTATE 2.EQUITIES MARKETS.. more fuel for dizzying rallies ahead.
Treasuries paying 1.2% ? LOL! So where do you think that cash will be invested now? There is big hint in my previous post. They are out of options parking cash...LOL ! Fed rate cuts working well... Rewind Circa 2000-2002 same thing happened back than, its not the first time seen this. What followed were two huge bull markets one in Real Estate and other in Equities..