Cash Allocation by Non-Bank Investors Globally “Cash is king” is starting to sound like a relic. Non-bank investors globally are holding less cash than at any time since at least 1999, leaving financial markets exposed to sudden shocks. Image: J.P. Morgan
S&P 500 Use of Cash The buyback cool‑off points to a strategic pivot by hyperscalers, prioritizing massive AI infrastructure rollouts over near-term shareholder returns. Image: Goldman Sachs Global Investment Research
Cash to Total Assets S&P 500 and S&P 500 Ex-Financials The corporate cash cushion is thinning. S&P 500 firms have slashed their reserves from pandemic peaks, redirecting capital toward AI infrastructure, growth projects, and buybacks in a world where cash no longer comes cheap. Image: J.P. Morgan Equity Strategy and Global Quantitative Research
Percentage of Time 60/40 Returns Were Positive or Outperformed Cash While cash remains an important component of financial stability, excessive cash holdings can hinder long-term wealth growth due to opportunity costs and inflation erosion. Image: J.P. Morgan Asset Management
U.S. High-Yield Spreads vs. Corporate Cash Flow as % of Debt (Leading Indicator) Rising AI infrastructure spending and swelling debt are draining liquidity, setting the stage for weaker cash-flow-to-debt ratios in 2026 and wider credit spreads across the sector. Image: Bloomberg
S&P 500 Intraday Returns – NY Cash Trading Hours vs. Overnight Trading U.S.-daytime volatility’s resurgence reflects renewed market focus on American macro developments, with global investors avoiding illiquid overnight hours—a behavior typically seen after major geopolitical or policy events. Image: Deutsche Bank Asset Allocation
U.S. Households’ Allocation to Equity, Bond and Cash Americans have never been so invested—literally—in the market, with household equity allocations at all-time highs, a boom shadowed by warnings of how sentiment can sour overnight. Image: Goldman Sachs Global Investment Research
S&P 500 Cash Spending Relative to Cash Flows Many S&P 500 companies devote substantial cash flow to stock buybacks, a practice that benefits shareholders in the short term but sparks concerns about favoring short-term gains over long-term growth. Image: Goldman Sachs Global Investment Research
U.S. Stock Market – Margin Debt and Free Cash Balances The current record margin debt, exceeding $1 trillion, signals heightened investor risk-taking and confidence; however, if the market falters, this elevated leverage could amplify volatility and losses. Image: Real Investment Advice
Impact of Policy Uncertainty on S&P 500 Cash Use S&P 500 buybacks may face significant impacts from policy uncertainty. Image: Goldman Sachs Global Investment Research
AAII – U.S. Retail Investors Allocation to Stocks, Bonds and Cash High equity allocations and low cash positions don’t always mean a market reversal is near. However, they suggest that much of the market’s potential gains may already be priced in, as investors have heavily committed to equities. Image: Real Investment Advice