Retail investors just parked a record $3.05 trillion in money market funds—up $202 billion from last year.
That's triple what they held in 2022. Double the 2020 pandemic peak.
Why? Money funds are still paying around 3.57% risk-free. People are choosing cash over stocks.
Since 2019, these balances have grown 14% annually. That's a lot of sideline money.
This isn't panic—it's pragmatism. When you can earn nearly 4% in cash with zero volatility, why rush into equities?
The question: how long does this last? And what happens when the Fed cuts rates and that yield edge disappears?
That's when the real rotation begins.
That's triple what they held in 2022. Double the 2020 pandemic peak.
Why? Money funds are still paying around 3.57% risk-free. People are choosing cash over stocks.
Since 2019, these balances have grown 14% annually. That's a lot of sideline money.
This isn't panic—it's pragmatism. When you can earn nearly 4% in cash with zero volatility, why rush into equities?
The question: how long does this last? And what happens when the Fed cuts rates and that yield edge disappears?
That's when the real rotation begins.