Nearly five and a half years into this bull market we still sometimes here the ”cash on the sidelines” argument as justification for further gains in stocks. The problem is that this argument hasn’t really been valid since 2010....
New data released today by the Investment Company Institute show another month in which investors piled more money into equity mutual funds and ETFs relative to money market funds....
Data recently released by the Investment Company Institute reveal yet another month in which investors’ allocation to cash fell again, to another record low. Needless to say, this data doesn’t quite fit with the ”cash on the sidelines” argument....
We frequently read about the ”cash mountain” that has piled up on corporate balance sheets since the global financial crisis. In many cases the level of cash is given as evidence that the the non-financial corporate sector is stronger now than ever before....
One of the common arguments for the continuation of this bull market is that investors have record amounts of excess cash sitting on the sidelines just waiting to be invested....
