Cash on Sidelines Less than Estimated: Goldman

sequoia

CNBC Published: Thursday, 29 Oct 2009 | 6:52 AM ET
By: Reuters

Investors could be disappointed if they anticipate tons of money waiting to get back into the stock market, since "cash on the sidelines" is much less than estimated, Goldman Sachs analysts said.

Based on their calculations, net equity inflow from individuals, institutional investors and corporations over the next several quarters could total $600 billion, the analysts said in a research note on Wednesday.

"'Cash on the sidelines' is much less than the $3.4 trillion in money market mutual fund assets that market participants typically cite as the No. 1 reason stocks are poised to rally," analysts wrote.

Investors have been keeping cash in money market mutual funds, which are considered a safe haven compared with equities.

"Cash on the sidelines" is often cited as a likely reason why stocks stand to gain more. The Standard & Poor's 500 index is already up some 55 percent since its early March low.

AGA7d

Thanks for the post - just what I had thought - not that much dumb money to push market higher than 12000 (or 11000).

weigoodone01

nctree

freedom

it's not that simple

Alchemist

trueself