There's nearly $5 trillion parked in money markets as many investors are still afraid of stocks

The coronavirus sell-off sent investors fleeing into money market funds, which ballooned well above $4 trillion, surpassing the peak of the financial crisis, according to research by LPL Financial. The flood into money markets pushed the sector's assets to the highest on record, peaking at $4.672 trillion during the week of May 13, according to Refinitiv Lipper, and even recent net outflows have left more than 90% of that increase intact.

"Even after the 45% bounce, give or take, in the S&P, we haven't seen really the big part of the retail crowd come back in … It kind of shows again that a lot of people are really still on the sidelines," Detrick said. "Basically anything that was liquid and that you could sell was put up on the auction block," said Nela Richardson, investment strategist at Edward Jones.

With the end of the second quarter approaching, there could be a move from fund managers to reinvest that cash in stocks to reach allocation targets. Richardson said she expects the market to make a technical move higher as investors moved back into stocks or high yield bonds from cash, especially with interest rates so low.

jesserpound When someone is selling stocks another guy has to invest the same amount. Or have I missed something?

Stop the corporate welfare

...and when someone withdraws $5T from money markets to buy stocks, someone else sells $5T in stocks to deposit in money markets.

Put 1% of it in bitcoin

They're expensive af

So what it saying is... the market has $5 Trillion on the sidelines that’s coming in long!!! lol. TOP OF THE MARKET!

Most of these money is belong to the 1% richest American. Rich people already have stock option to make more money via Fed's purchasing plan for company bond and ETF. To release $5 trillion of rich people, Stop bailout and let market do itself.

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