What Cash on the Sidelines?

We often hear in the mainstream media of all the available cash sitting on the sidelines and waiting to be invested as evidence that this bull market can go on for several more years. The bull market may well continue for some time, but if it does it will not be because of investors finally putting all their excess cash to work. Indeed, the charts below highlight the following points:

• Mutual fund cash is at all-time lows
• Equity and ETF assets relative to money market assets is at all-time highs
• Retail investor money market assets as a percent of market cap is at a generational low