Daily Report : Institutions are coming off the "sidelines"; High beta indexes are jumping

  • Jason Goepfert

    Jason Goepfert

    Published: 2020-06-17 at 17:32:02 CDT

Institutions had been piling into money markets, much as retail investors have been. Over the past year, asset growth in money markets hit a nearly 40-year high, and it has only now started to reverse. The "cash on the sidelines" argument is weak, and future returns didn't support this as a bullish argument. Hedge fund exposure to stocks shows conflicting signals, with perhaps a slight downside edge.; Over the past 3 days, the Russell 2000 has rallied at least 2% and the Nasdaq Composite at least 1%. That has indicated "too much too fast" on a short- to medium-term basis, especially for the broader indexes like the S&P 500. It was mostly a good sign for the Nasdaq, though.

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