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.