Just pointing out what I see. A newbie overcomplicating things, thinking he is going to 'get it'. Just watch CNBC news and fade them, you'll probably do better.
Market may be going much higher, but it won't be because of "sideline cash".... will be because of the Fed money pumping.
I'm trying to prevent this guy from going down the rabbit hole of "understanding the market" which will _never_ happen. But yeah. Sure buddy, you'll get it.
Then do you know where the money comes from when everything seems to go up? It could be banks creating money through increased lending. I know 1 day isn't enough to measure anything substantially, but it could still happen that everything goes up in a given year. In your example of real estate or drugs, isn't the money also just changing hands there? It would seem that long-term, money can be created, but never destroyed (aside from rare instances of actually burning paper money or melting coins). So perhaps, money is "destroyed" by INFLATION and that works to balance things?
Of course, but it's leaving the marketplace.... no longer considered "sideline (financial market) cash".