U.S. Money Market Fund Assets vs. Federal Funds Effective Rate U.S. money market funds are sensitive to changes in interest rates, and historical trends indicate that they often experience outflows approximately 12 months after an initial Fed rate cut. Image: Real Investment Advice
Money Market Fund Flows In the lead-up to U.S. elections, money market funds, which are seen as a safe haven, frequently see inflows as investors aim to lower their risk exposure. Image: BofA Global Investment Strategy
Money Market Fund Assets Will we see a peak in money market fund assets about nine months following the first Fed rate cut this time, assuming there is no recession? Image: BofA Global Investment Strategy
M2 Money Supply The recent rise in the M2 money supply in the United States is considered a favorable development for equity markets, enhancing liquidity and potentially driving additional investment in stocks. Image: Deutsche Bank
All Money Market Funds Total Net Assets Investors currently hold $6.22 trillion in money market funds, a figure that is being interpreted as contrarian bullish for the stock market. Image: BofA Global Research
U.S. Money Market Fund Assets Following a Fed rate cut, U.S. money market funds typically experience outflows 12 months later as investors adjust their portfolios and manage risk in response to changing interest rates and market conditions. Image: Goldman Sachs Global Investment Research
M2 Money Supply and CPI Inflation The significant decline in money supply growth is one of the factors contributing to the contraction of inflation in the United States. Image: Real Investment Advice
Money Market Assets Under Management Following a Fed rate cut, money market funds typically experience outflows 12 months later as investors adapt portfolios and manage risk exposure in response to shifting interest rates and market conditions. Image: BofA Global Investment Strategy
Money Market Fund Assets vs. Fed Funds Target Rate Money market funds often experience outflows 12 months after the initial rate cut. This occurs as investors reallocate their investments and adjust their risk exposure in response to fluctuations in interest rates and market conditions. Image: BofA Global Fund Manager Survey
Money Market Fund Flows While the U.S. equity market has been steadily rising since its 2022 low, conservative investors maintain a strong inclination towards holding cash. Image: BofA Global Investment Strategy