Q: Dear Peter et al:
Everyone including yourselves talk about 7+ T USD on the sidelines when a question about market correction is asked. This money will step in and protect the markets from a crash. That seems to be the
thesis here.
But the huge cash reserves of big companies, (BRK for example) pension funds and various PE firms
(listed and unlisted) have ALWAYS
been a feature in the market, no?.Even during the bull or bear
market this Cash on the sidelines has been a constant, right?
So, the question is what is the range of cash on the sidelines? Can this cash on the sidelines act as a " metric" to signal Bull or Bear market?
(Just like your thesis on VIX. 40+ means buying time).
In simple terms what should be the "Normal" cash on the sidelines?!
Everyone including yourselves talk about 7+ T USD on the sidelines when a question about market correction is asked. This money will step in and protect the markets from a crash. That seems to be the
thesis here.
But the huge cash reserves of big companies, (BRK for example) pension funds and various PE firms
(listed and unlisted) have ALWAYS
been a feature in the market, no?.Even during the bull or bear
market this Cash on the sidelines has been a constant, right?
So, the question is what is the range of cash on the sidelines? Can this cash on the sidelines act as a " metric" to signal Bull or Bear market?
(Just like your thesis on VIX. 40+ means buying time).
In simple terms what should be the "Normal" cash on the sidelines?!
5i Research Answer:
There is $7.2T in money market funds right now, up about 16% from last year. Non-financial...