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Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, observes that both the S&P 500 index and money market fund assets are at all-time highs. According to Balchunas, this presents a contrast: strong equity markets alongside significant cash reserves offer opportunities for bullish investors.
He adds that interest rates will likely need to fall below 3% to encourage the movement of that cash into stocks.
Earlier this year, Balchunas remarked on VOO becoming the first ETF to surpass $1 trillion in assets after significant growth over 12 months. He has also drawn comparisons between cryptocurrency moves and past market events, including a Bitcoin decline reminiscent of the taper tantrum response. These prior observations come as markets weigh the balance between cash holdings and equity investments.