$8 TRILLION IN CASH... Should Investors Be Worried?

Every year we get the same chart.

Money market fund assets hit another all time high.

Financial media rolls out the same explanations. Investors are scared. Warren Buffett is sitting on cash. Institutions are defensive. Inflation risks remain. Geopolitical tensions are rising. The Fed is cutting rates.

This year is no different.

Money market assets have climbed above $8 trillion, and once again people are pointing at that pile of cash as proof that a bear market is right around the corner.

I’ve heard this story for years.

Before that it was Buffett’s cash pile.

Before that it was bond fund inflows.

Before that it was some other indicator that was supposedly going to signal the end of the world.

Maybe Santa Claus is hoarding cash too. Who knows.