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‘Doomsday Cash’ And The $4.49 Trillion Question
Global equities took in another $3.3 billion over the latest weekly reporting period.
It was the second-smallest weekly inflow of 2021.
Even as the pace slows, the uninterrupted streak is remarkable. The total YTD haul for global equities now sits at $613 billion (figure below). That's more than the total new spending allocated in the bipartisan infrastructure bill being hashed out on Capitol Hill.
The breakdown was predictable. "The flows continue to chase performance themes," Nomura's Cha
I read this as a bullish signal for equities. Inflows slowing, lots of cash on the sidelines, concerns and worry mounting. I’ll be looking to put more cash to work as volume fades in August.
Yes, let’s be thankful for buybacks. The corporate buyer is happy to buy at any price.
Some people’s money will just stay in money markets because choose to leave it there, no matter what. (My 87 yr old parents).
Some money is waiting for an equities market “crash” to get a better buy-in price (LOL).
Assuming the Delta variant does not wreak too much economic havoc, it seems that by Q4, we could have a significant number of people who “throw up their hands”, capitulate and buy equities.
At 76 I’m with your parents. Got 10% in cash and 30% in solid bond funds earning just under 3%. I’m too old to care about stocks. Any of them I have left with dividends under 3% and big capital gains are on my list to contribute to my favorite charities over the next five years or so, especially if Biden succeeds in getting rid of the step-up basis on inherited assets.
Mr. Lucky- you are a gem. I love that you are thinking about charitable contributions and not just leaving everything to your kids.
I hope to do that, too.
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