The ultra wealthy are holding 34% cash, have only 20% of assets in stocks.
- Thread starter stinkynuts
- Start date
When is the big money finally going to back into the market? After the Fed pauses in two weeks? I think that will be the turning point. Or maybe next year when they start cutting?
The U.S. government is close to a deal on the debt ceiling. The deal has been approved by both house parties and it only needs to be passed in the senate and signed in to law by the President. The probability that this will be done is very likely. The raising of the debt ceiling takes into account the financial necessities of running the American government for the next two years. It is likely that the debt ceiling will be raised again in two years time, we ( the world ) has been in bad economics times and a pandemic. The world needs stimulus to keep from going into a recession/depression. The world economy is not in good condition, any bad news can send contagion into the economy. Be prepared for economic set backs that are not a recession/depression. The prices of stocks are still too high. I believe that by raising the debt ceiling stock money shift to the bond market. The expected interest to be paid by U.S. bonds are 5.25 to 5.50%, in which case mortgage prices will be higher than this amount. As a consequence, the economy of the U.S. ( and the world ) will cool. This will be in the next two years. Many will see this as a negative, but in fact it is necessary and I believe it to be a positive. As the economy cools it stabilizes. The U.S. economy is in a bad economic situation, the raising if the debt ceiling is a measure to stabilizes the situation. A sign to look for is if the U.S. government raises the debt ceiling again in two years.
The rich are holding cash to buy in when the prices are low.
[1] Financial institutions ( big money ) will return to the markets when there is a stable environment. I do not expect this to happen in the next two years.
* ( Financial institutions ( big money ) are always in the market, the big money will return when there is confidence in the economy )
[2] Not in two weeks, two years is more likely. Do not be fooled by the ups and downs of the market as economic stability.
[3] Interest rates can not be cut as long as governments are issuing bonds at a high rate. Look for bond rate cuts before you can expect mortgage rate cuts.
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it already has , bro...these rallies aren't because retail money
high net worth investors might be sitting on the sidelines, but institutional ones aren't
