Locator: 49243MMF.
My favorite chart.
MMF: most recent data -- Americans added more cash to their MMFs. Link here. And the increase was not trivial: up $31 billion. Monthly data here.
Posted September 12, two weeks ago, link here:
This is what I think will happen if the Fed cuts 100 basis points before the end of 2025 and and all else remains unchanged (i.e., no major geo-political news issues or major economic changes affecting the mindset of investors):
- who holds that $7 million in MMFs: upper income folks; investors; folks who are not living beyond their means; folks who have a positive cash flow and able to put money into savings/investing;
- for those folks who hold $7 million MMFs, how do they feel, emotionally? Overall they feel "relatively rich" or "very well off." They may not like the headline but when they do the math they will realize there is not a big difference between 3% and 4% when it comes to a Fed cut or a MMF;
- 90% of Americans are financially illiterate and won't change their investment habits
- what will these "very well-off folks" do based on how they feel? They will continue to put money into their savings / investing accounts even as they buy more stuff;
- why will they do that, put more money into savings/investing? because that's what they do! LOL. I didn't say they would necessarily put more
more into savings/investing, I just say they will continue to add money
to their savings / investment accounts because that's what they do.
More could be said but I doubt anyone reads past this line.
So, how did that age: most recent data -- Americans added more cash to their MMFs. Link here. And the increase was not trivial: up $31 billion.
