There's a record $5.3 trillion is cash on the sidelines as investors get more bearish on stocks. Here's why that could mean big gains ahead.
"This raises too many tail risk issues including credit tightening, commercial real estate and wide economic implications," Lee said. And yet, Lee still sees a balanced risk/reward setup for the stock market as the banking sector shows signs of stabilizing and earnings results hold up better-than-expected.
And if ongoing developments in the banking sector, economy, and stock market turn better-than-expected, then there's a massive $5.3 trillion pile of cash that could act as fuel to drive the next bull market in stocks. That's because, according to Lee, much of the cash that's been built up over the past couple of years was withdrawn from the stock market.
"Retail liquidations of S&P 500 and Nasdaq stocks exceeds [retail's] purchases since 2019," Lee told Insider on Friday, referencing data from Goldman Sachs. "I think stocks are flat vs. [a] year ago and sentiment far worse and there is way more cash on [the] sidelines. So there is definitely [a] flows story that could unfold," Lee said. LeeIf that massive cash pile starts to unwind, investors have few options on where to put it, and the stock market is likely a top choice.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Here’s what the SEC will require under its strict new stock buyback disclosure rulesThe new rules 'will increase the transparency and integrity' of corporate stock repurchasing overall, said SEC Chairman Gary Gensler.
Baca lebih lajut »
As India Overtakes China in Population, Will Its Stock Market, Too?The key, say some economists, is to look at the ratio of those who are middle age to those who are older.
Baca lebih lajut »
Short sellers reaped nearly $400M in a day from the bank stock routShort sellers pocketed nearly $400 million in a single day from the regional bank stock selloff, report says
Baca lebih lajut »
Zions’ stock on the rise months after prices plunged as analysts upgrade bank’s outlookThe uptick for Zions Bancorp comes as JP Morgan predicts the Utah-based financial giant’s stock will do well in coming months.
Baca lebih lajut »
Dem congressman who literally represents Wall Street raises eyebrows with stock tradesA Democratic congressman who represents Wall Street recently sold shares in a troubled California bank just days before the stock plummeted in value.
Baca lebih lajut »
Stock market news today: S&P 500 aided by Apple, big jobs gainUS stocks climb as investors cheer strong Apple earnings and assess big April jobs report
Baca lebih lajut »