Americans have significantly increased their investments in cash-like assets, driven by the Federal Reserve's interest rate hikes. Assets in money-market funds reached a record $6.12 trillion earlier this month. This surge in cash investments has led to concerns about a 'cash trap,' where high interest rates may lock investors into low-return assets. Over $6 trillion is currently held in money market funds, and experts are questioning where this money will go if interest rates decline. Inflows into money market funds have been substantial, with $62.3 billion captured recently, while equity funds have also seen a rebound with $39.2 billion in net inflows. Despite the high inflows, there is growing concern that hoarding cash could pose a significant risk to investment portfolios.
"Last year, Americans poured more than $500 billion into money markets—funds holding cash and short-term debt." @callieabost makes the case (w/data) - if you are young - for investing, not hoarding cash https://t.co/W2uLlPJpr8
After a two-month dip, Money Market funds have staged a remarkable comeback, capturing $62.3 billion in inflows🚀 Equity funds rebounded strongly from a slow April, securing $39.2 billion in net inflows. The driving force behind this surge? A staggering $58 billion flowed into… https://t.co/f0oS0HSi7n
💸WE'RE TOO OBSESSED WITH CASH💸 Americans have been saving the most cash in five decades(!!!) Why your cash hoard could be the biggest risk to your portfolio: https://t.co/01VFsKUxxX
Americans have poured money into #cash -like investments since #Fed began raising interest rates, driving assets in money-market funds to a record $6.12 trillion earlier this month, chart @WSJecon https://t.co/5FSYVGb8G5 https://t.co/skpQmc7Uon
Over *$6tril* in money market funds right now… Where does that go if rates start coming back in?? Decent chunk will likely go somewhere. via @Vlajournaliste https://t.co/JD7AXpD2el
Americans Chasing High Interest Rates Risk Falling Into a ‘Cash Trap’ https://t.co/Rkge2vWFng
Americans have poured money into cash-like investments since the Fed began raising interest rates, driving assets in money-market funds to a record $6.12 trillion earlier this month ICI https://t.co/4J1E82MTyQ
Americans Chasing High Interest Rates Risk Falling Into a ‘Cash Trap’ - WSJ https://t.co/RSIERB0z8c
Americans who have poured money into cash-like investments face a choice: keep sitting on their cash or figure out how to redistribute it https://t.co/IDGIfBIHkZ
Americans Chasing High Interest Rates Risk Falling Into A ‘Cash Trap’ - WSJ https://t.co/o4PiNaQnlW