Join institutional investors, analysts and strategists from the world's largest banks: Subscribe today
Already have an account? log in
Long Cash!
Another week, another new record for money market fund assets.
Money funds took in $29.12 billion i
How is this consistent with the previous article that highlights another massive move into U.S. equities? Where is the money coming from?
Well, I mean, if I buy stocks and you put money into a money market fund, that’s an inflow to stocks and an inflow to money funds. It’s not a closed system.
Would that mean money is coming from M1 then?
I’m thinking most of that was moved from bank deposits, plus income flow being parked in MMF? As opposed to shifted from some other “asset class”.
I don’t think all of that as “dry powder” for markets, as much of it was probably sitting in bank deposit accounts not associated with brokerage accounts. But some of it probably is. Just 25% would be a good deal of dry powder.