Logiki Financial

Great article from The Wall Street Journal¹, discussing the HUGE CASH PILE still sitting on the sidelines. For me, this is a significant bullish indicator 🐂 as more than $7 trillion in cash remains on the sidelines.

The stock market can't move higher without NEW CASH entering markets, driving prices higher -- similar to what you might have experienced with the real estate prices or if you've ever been to an auction.

The rules of supply/demand tell us that when demand is low, prices go down and when demand is high, prices go up. With so much cash on the sidelines, there's a significant runway for demand that should provide investors with the confidence to stay invested/add new money to their portfolios.

It's been said that 'stocks climb a wall of worry' and with markets already at all-time highs, it will be tempting to fear equities and I imagine many investors will miss out on significant upside between now and the next potential recession around 2028². A paraphrased quote from Peter Lynch comes to mind, "more money has been lost trying to avoid bear markets than by the bear markets, themselves".

Drop your thoughts in the comments below ⬇️

¹https://apple.news/ANO_in_dtQuyetFm26fIb2w
²https://www.capitalgroup.com/ria/insights/articles/welcome-benjamin-button-economy.html

BREAKING🚨: Krispy Kreme stock is now cheaper than a single doughnut 🍩

Wall Street just got glazed and confused.