”The dash for cash on Wall Street is back on. Investors have added about $135 billion to global money-market funds over the past four weeks … through Jan. 18. That is the best stretch since the four-week period ended May 2020, when those funds logged roughly $175 billion in net inflows …
“Increased cash allocations are the latest sign of caution among investors who are questioning whether the recent rebound in stocks and bonds will continue … The average return on U.S. money-market funds this month is 4.12%, the highest yield since the 2008 financial crisis … The S&P 500, on the other hand, has a dividend yield of about 1.6%.”
“By the end of December, assets sitting in money-market funds hit a record $5.18 trillion … That surpassed the previous high of $5.16 trillion from May 2020 … In December, individual investors slightly lowered the share of cash in their portfolios to about 21.8%, below the historical average of roughly 22.5% … The reading still marks one of the highest levels since May 2020. In comparison, stock and stock fund allocations are at about 63.9%, above the historical average of around 61.5%.
: The Wall Street Journal
(Print Edition) January 26, 2023 (Narrative edited for brevity. Attribution to data sources omitted for brevity).
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