"The Impact of $6 Trillion in Money-Market Funds on Stock Market Liquidity"

Ned Davis Research's chief global macro strategist, Joseph Kalish, argues that the $6 trillion in money-market funds won't necessarily boost the stock market, citing historical data showing declines in money-market assets coinciding with Federal Reserve moves to ease monetary policy and bolster the economy. Despite a surge in money-market fund assets over the past year, Kalish points out that previous declines in such assets were followed by bear-market moves in equities, which is not the case currently with equities near record highs. While there are reasons to be bullish on equities and credit, Kalish believes the pile of cash in money-market funds is a weak factor in this scenario.