Bank of America say money-market funds are the new hot asset

 

Bank of America identifies the next bubble and says investors should sell stocks rather than buy them after the last rate hike

Published: March 24, 2023 at 7:47 a.m. ET

They point out that assets under management for money funds has now exceeded $5.1 trillion, up over $300 billion over the past four weeks. 

The last two times money-market fund assets surged — in 2008 and in 2020 — the Federal Reserve slashed interest rates. 
Hartnett is fond of the saying, “markets stop panicking when central banks start panicking,” and he noted a surge in emergency Fed discount window borrowing has historically occurred around a big stock-market low.
MarketWatch 24 March 2023
https://www.marketwatch.com/story/bank-of-america-identifies-the-next-bubble-and-says-investors-should-sell-stocks-rather-than-buy-them-after-the-last-rate-hike-98b803ab

1325 CET

Where is the money going?
The answer begins with money-market funds, low-risk investment vehicles that park money in short-term government and corporate debt. 
Such funds saw inflows of $121bn last week as svb failed.
https://englundmacro.blogspot.com/2023/03/how-federal-reserve-drained-financial.html