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Technology Stocks : Semi Equipment Analysis
SOXX 305.47+3.1%4:00 PM EST
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To: Return to Sender who wrote (95049)9/13/2025 8:22:24 PM
From: Sam2 Recommendations

Recommended By
Julius Wong
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$7 trillion ‘wall of cash’ worry is looming for investors once Fed interest rate cuts start
Published Fri, Sep 12 202512:55 PM EDTUpdated Fri, Sep 12 20253:21 PM EDT
Eric Rosenbaum

Key Points
  • Investors who parked cash in money market funds and other high-yield savings accounts have benefitted from the interest rate hikes of recent years.
  • There is over $7 trillion in cash-equivalent investments that have offered an attractive return for no market risk, and while much of that money is institutional or emergency funds savings, some shift out of cash-equivalent assets can be expected as the Fed begins to cut rates.
  • But Wall Street’s “wall of cash” theory, which contends lower interest rates will lead to a flood of cash into stocks and drive a new rally, has been debunked many times.
This may not be an era in which Americans are awash in physical currency fattening their wallets, but we are awash in cash parked inside accounts that have been generating attractive yields thanks to Federal Reserve interest rate hikes to combat inflation. There is a record amount of cash in money market funds, roughly $7.6 trillion, according to Crane Data.

continues at cnbc.com
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