Investors are holding an estimated 4.8 trillion in cash <a rel="noreferrer nofollow noopener" href="https://www.cnbc.com/2023/01/18/investors-are-holding-near-record-levels-of-cash-and-may-be-poised-to-snap-up-stocks.html" target="_blank">https://www.cnbc.com/2023/01/18/investors-are-holding-near-record-levels-of-cash-and-may-be-poised-to-snap-up-stocks.html</a> Is cash king again? * Total net assets in money market funds rose to $4.814 trillion in the week ended Jan. 4, according to the Investment Company Institute <a rel="noreferrer nofollow noopener" href="https://www.ici.org/research/stats/mmf." target="_blank">https://www.ici.org/research/stats/mmf.</a> That eclipses the prior peak of $4.79 trillion during May 2020, back in the earlier months of Covid-19. * Investors, worried about earnings and interest rates, may be willing to wait before they put more money into stocks. At the same time, money market funds are actually generating a few percentage points of income for the first time in years. That means investors may be finding a safer way to generate some return while they wait for the right moment to invest. Julian Emanuel, senior managing director at Evercore ISI, said the surge into money markets was a direct result of selling stocks at year end. &gt;“If you look at the flow data for the middle of December, liquidations were on the order of March 2020,” he said. “In the short-term, it was a very contrarian buy signal. To me this was people basically selling the market at the end of the year, and they just parked it in the money market funds. If the selling continues, they’ll park more.” -------------------- My two cents: If you give investors a chance to make decent/solid returns (4-7%) on risk-free investments, a noticeable portion of them will move their money out of the volatile stock market. 4.8 trillion is a massive amount of money. Fidelity&#039;s (one of the largest brokerage firms in the world) entire assets under management are 4.5 trillion. Are you holding cash?