Looking at money market fund flows will tell us something about what consumers and business are doing with their cash. The answer seem to be - not much. The money short-term funds is stil higher than last Fall. We peaked at the end of the year. There has been some decline bu tthere is not a lot of risk taking as evidenced by these numbers. This means there is a lot of cash to push stocks higher if investors have a change in risk taking..
Dollars in money market funds have declined by over $300 billion with most of that coming from government funds. The non-government funds have stayed stable. This would make sense that risk taking would first occur with funds from the least risky assets which have the lowest yield. However this is a just a transfer inot other short-term assets. A real rally would see money moving into longer term assets and out of cash.
Dollars in money market funds have declined by over $300 billion with most of that coming from government funds. The non-government funds have stayed stable. This would make sense that risk taking would first occur with funds from the least risky assets which have the lowest yield. However this is a just a transfer inot other short-term assets. A real rally would see money moving into longer term assets and out of cash.
No comments:
Post a Comment