From 24/7 Wall St. · Rich Duprey · · 1m 10s
Investors Build $5.1 Trillion Cash Fortress
Investors shift $5.1 trillion to cash as Fed pushes rates toward 4.75%.
In brief
Investors shift $5.1 trillion to cash as Fed pushes rates toward 4.75%. Investors are building a $5.1 trillion cash reserve with short-term yields near 4.75% to avoid stock market volatility. Originally reported by 24/7 Wall St..
Investors Snub Wall Street
Investors are building a record $5.11 trillion cash fortress as short-term yields rise to 4.75%.
Fed Raises Rates for First Time Since July 2023
The Federal Reserve raised its benchmark rate by 25 basis points to 3.75%-4.00% on Sept. 16.
Markets Price Three More Rate Hikes by Mid-2027
U.S. Bank and UBS report investors expect three additional Fed rate hikes by mid-2027, pushing rates to 4.50%-4.75%.
Households Hold Record $5.11 Trillion in Money Market Funds
U.S. households hold $5.111 trillion in money market fund assets, up $63 billion from the previous quarter.
Cash Offers Competitive Returns
Short-term yields now provide meaningful returns without stock market volatility, changing investor math.
Cash Fortress Could Boost Stock Buying Power
The $5.1 trillion cash reserve may become a key source of buying power if stocks offer better valuations.
At a glance
Investors are building a $5.1 trillion cash reserve with short-term yields near 4.75% to avoid stock market volatility.
