MONEY MARKET INFLOWS FOR THIS WEEK ARE OUT FOLKS
We added….$42B to Money Market Funds 😂
Last week we added $54B, so around $96B over two weeks were added to MMFs.
This kind of explains the volatility we saw in the stock market towards the end of 2024.
Most of the money entering MMFs isn’t coming from peoples’ salaries or savings — it’s being reallocated from other assets.
This likely means we had about $100B worth of selling in the markets at the end of December & those people decided to put that money into something safer, go risk-off, and get a 4% yield from a MMF while locking in profits for 2024.
The bad thing? That money left the markets.
The good thing? There are $6.85T on the sidelines when historically MMFs have only had about 4T.
Money is on the sidelines and being patient for an opportunity
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