What bull market for stocks? Investors are still sitting on a record pile of cash.

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There are trillions of dollars parked in money-market funds and other cash-like investments collecting about a 5% return. It may take awhile to be deployed...

Even with U.S. stocks in a new bull market, investors aren’t showing many signs of backing away from money-market funds and other cash-like investments offering yields of about 5%, the highest in about 15 years.

He expects the tally soon to eclipse $6 trillion and then to stay elevated, even though money-market assets already grew almost 18% in May from a year ago. “If you told me five years ago we were going to be getting 5% on cash, I’d call you crazy,” said Mike Reynolds, vice president of investment strategy at Glenmede. “We think we are still in a bear market [for stocks], and this is a shorter-term blip in a longer-term trend.”

“You get maximum bearishness near the bottom on the market and maximum bullishness at top of the market,” Rosen said. Tame T-bill deluge Money-market funds serve as a key cog in the financial plumbing of markets because they hold “cash-like” investments that quickly repay, including 1-month TMUBMUSD01M Treasury bills. The bill market includes securities that mature in 52-weeks or less.

 

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