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Cash For Stocks!
One of the pressing questions headed into 2024 was this: What'll become of the $6 trillion parked in money market funds?
Beneath that overarching query are myriad additional inquiries, some of which relate to the proverbial "plumbing," which is to say this is a discussion with systemic implications.
A simpler, weekend-friendly debate revisits the idea that a portion of that "sideline" cash might be tempted by the never-ending run up in equities.
It's true that sleep-well-at-night government m
Most of what I own in the world was created through the fortunate behavior of the market for treasury securities and the falling cost of other peoples’ money from the very early 1980s through the early part of this century. After some luck in the stock market, all of that beneficence was disrupted by the recent inflation and rising rates engineered by the Fed. However, once again my luck has returned. On two occasions in the last six months I have been able to sell large positions in inflated stocks, and cover the gains by selling similar positions in credit assets suffering from unrecognized capital losses. In both situations I was able to create a swap that erased my potential losses, rid myself of huge gains which reduced my flexibility, doubled my cash position, avoid all taxes from the transactions and maintain my investment income, almost to the dollar. The government and its economic ecosystem have profited me well, and provided a financial high colonic to my portfolio. Luck is such a wonderful thing.
I love your stories – not only are they interesting but I usually learn something too. 🙂
Would you be my dad?