about that wall of cash on the sidelines…

Posted by

The piggybank is not just being emptied, it is being pigraped by 250 million Americans who are tired of being penalized for saving.

What’s the latest on that “Wall of Cash” on the sidelines?

Ask USA Today:

Investors are yanking money out of money funds and moving to bond funds — but some are just cashing out. Investors pulled a net $490 billion from money funds this year through October, according to the Investment Company Institute, the funds’ trade group. A record-shattering $313 billion went to bond funds. And $1.9 billion fled stock funds.

“More money is flowing out of money funds than is going into bond funds — something that’s only happened twice in 26 years,” says Vincent Deluard, strategist at TrimTabs.com, which tracks fund flows. “It shows how deep the recession is: They may be taking money out to pay the bills or the mortgage.”

It’s the shock of the century!  Helicopter Ben drops rates to a semi-permanent zero percent and people decide that saving is pointless!  Whodathunkit?  They then pull cash out of money markets and fling it at anything doing business in China or promising a decent bond yield.

Amazing what Cause and Effect can teach us!

Viva Responsible Monetary Policy!  Keep “stimulating”, Ben, someone will get a job sooner or later!

Sources:

Investors Cash Out Of Money Funds in Droves  (USA Today)

Tags: , , ,

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. satin pillowcase hair commented on Sep 27

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2009/12/20/about-that-wall-of-cash-on-the-sidelines/ […]

  2. immediate edge app download commented on Sep 28

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2009/12/20/about-that-wall-of-cash-on-the-sidelines/ […]

  3. td online commented on Oct 15

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2009/12/20/about-that-wall-of-cash-on-the-sidelines/ […]

  4. space a travel commented on Oct 29

    … [Trackback]

    […] Read More here on that Topic: thereformedbroker.com/2009/12/20/about-that-wall-of-cash-on-the-sidelines/ […]

  5. 마루마루 commented on Nov 29

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2009/12/20/about-that-wall-of-cash-on-the-sidelines/ […]

  6. omega replica watches commented on Jan 07

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2009/12/20/about-that-wall-of-cash-on-the-sidelines/ […]

  7. agen slot joker123 commented on Jan 12

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2009/12/20/about-that-wall-of-cash-on-the-sidelines/ […]

  8. wigs for women commented on Jan 14

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2009/12/20/about-that-wall-of-cash-on-the-sidelines/ […]

  9. Sanyo PDG-DWT50L manuals commented on Jan 21

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2009/12/20/about-that-wall-of-cash-on-the-sidelines/ […]

HowIInvestMyMoney