Money Market Flows
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
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
12-Month Rolling Money Market In/(Out)Flows vs. NY Fed 12-Month Ahead Yield Curve Implied Recession Probability The probability of a U.S. recession can significantly influence investor behavior, potentially leading to a rotation out of money markets if the likelihood of a recession diminishes. Image: Goldman Sachs Global Investment Research
Money Market Fund Assets as a Percent of S&P 500 Market Capitalization Cash on the sidelines is not elevated relative to the S&P 500 market capitalization. Image: Morgan Stanley Wealth Management
Cash – U.S. Money Market Funds Deposits as a % of Total Equity and Bond Market Value Cash on the sidelines is not as elevated as many believe. Image: BCA Research
U.S. Money Market Fund Yields vs. U.S. Bank Deposit Rates Higher rates could lead to deposit flight and increased liquidity risk for U.S. banks. Image: J.P. Morgan
Flows into Global Money Market Funds There were significant flows into global money market funds in the first 9 weeks, as rate rises. Image: Goldman Sachs Global Investment Research
Money Market Funds Assets as a % of Global Equity Market Capitalization Cash has been rising in the last few months but remains low as a % of global equity market capitalization. Image: BofA Global Investment Strategy
Cash Levels – S&P 500 and Money Market Fund Assets Investors are still sitting on a high amount of cash, despite the rally in the S&P 500. Image: Alpine Macro
Fund Flows – Bond, Equity and Money Market Funds Since the start of the coronavirus pandemic, more money has gone into bonds than stocks. Image: Fidelity Investments
Money Markets and Risk Assets Should investors expect more upside for stocks, as a wall of money supports risk assets? Image: BofA Global Research
U.S. Money Market Fund Holdings According to J.P. Morgan, the wall of cash may remain very high indefinitely, as defensive assets are delivering their weakest performance. Image: J.P. Morgan