Fundstrat's research team estimates that the US stock market could benefit from a record $5.9 trillion in cash in 2024: this amount of cash will serve as a cushion and future market declines will be short-lived, Business Insider writes.
►Subscribe to the Ministry of Finance page on Facebook: main financial news
“Experts advise buying on minor dips in the coming weeks and months,” Fundstrat said.
In particular, Fundstrat technical strategist Mark Newton noted that the growing amount of cash will be a strong support for the stock market in 2024.
Interest in cash assets this year has been fueled by the Fed's 5% rate, with total cash held in the secondary market reaching $5.88 trillion. That's up 24% from last year's $4.73 trillion.
This cash pile should be a source of comfort for market bulls, so minor downturns in the near term are likely to be bought.
The expert added that money funds could begin to use these assets as early as the new calendar year, as soon as the market rebalances, which could further contribute to the rally.
