Still in a buy the dip regime as still "gas in the tank". Money market cash reaches record $6.1T. Of $1.2T rise in past year, only $234 billion is bank deposit flight.

The video in this report is only accessible to members
The video in this report is only accessible to members
The video in this report is only accessible to members
The video in this report is only accessible to members

VIDEO: We are still in a buy the dip regime.  The fact that money market cash again rose to an all-time high is bullish for stocks.

Please click below to view our Macro Minute (duration: 5:59).

The video in this report is only accessible to members
The video in this report is only accessible to members

Equity markets are up modestly for the week (despite Thu sell-off) extending the rally for a 20th week. While this rally is certainly mature (vs 16-19 weeks of most recent gains), there remains a substantial amount of dry powder to fuel further gains:

As extended as this rally might feel (20 weeks), a "buy the dip" regime remains as:- sentiment supportive --> still find many skeptics in our Latam roadshow- technicals positive --> Mark Newton sees S&P 500 5,250-5,300 by late March- flows very supportive --> record $6.1 trillion cash on sidelines In our recent meetings, many investors express skepticism on cash on the sidelines, arguing that the $1.2 trillion rise is due to deposit flight from banks into money markets. This is simply wrong. Here is the math:- since Feb 2023, total commercial bank deposits fell -$234 billion- this is presumably due to rate arbitrage of mm funds vs deposit cash- since Feb 2023, money market fund balances surged $1.2T to $6.1T- thus, only $234b ...

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