They point out that assets under management for money funds has now exceeded $5.1 trillion, up over $300 billion over the past... They point out that assets under management for money funds has now exceeded $5.1 trillion, up over $300 billion over the past four weeks. They also counted the biggest weekly flows to cash since March 2020, the biggest six-week inflow to Treasurys ever, and the largest weekly outflow from investment-grade bonds since Oct. 2022.
The last two times money-market fund assets surged — in 2008 and in 2020 — the Federal Reserve slashed interest rates. Hartnett is fond of the saying, “markets stop panicking when central banks start panicking,” and he noted a surge in emergency Fed discount window borrowing has historically occurred around a big stock-market low.
There is one difference this time, in that inflation is a reality and that labor markets, not just in the U.S. but in other industrialized nations, remains exceptionally strong. The Bank of America team counted 46 interest rate hikes this year, including by the Swiss National Bank after its rescue of Credit Suisse last week.
History, according to the BofA team, says to sell the last interest rate hike. “Credit and stock markets are too greedy for rate cuts, not fearful enough of recession,” they say. After all, when banks borrow from the Fed in an emergency, they tighten lending standards, which in turn results in less lending, and that leads to less small-business optimism, which eventually cracks the labor market.
Bond yields TMUBMUSD10Y and U.S. stock futures ES00 dropped on Friday, as shares of Deutsche Bank tumbled in Frankfurt.See also: Money-market funds swell to record $5.4 trillion as savers pull money from bank deposits
Ísť not Bubble it's Biden administr ations and politics kills USA economy if USA not wake up yours country go to .......
Misleading people. I don’t believe it at all.
Alt. Headline . Bottom is in
Even if a bubble is not here, selling stocks will give rise to downside risk that can form the basis of a bubble. Is Bank of America managed by hate-filled Canadians, as JPMorgan Chase might also be?
😂 so they can eat what’s left. Hold!
Nooooooo we not selling
They have no crystal ball. One person says sell. Another says buy. Basically all noise. Invest and allocate your money in whatever manner suits you. Don’t pay attention to twitter.
No that is insane
Well I'm sure everyone dumping shares across the board will help contain this.
Sounds like BankofAmerica has some short positions and or bad hedge bets they need out of. Funny how everyone that told you to buy, now NEEDS you to sell.
LOL no.