Bank of America
- Investors are putting an increasing amount of their cash into money market funds.
- The multitrillion-dollar flood into the funds comes as risk-free interest rates top 5%.
- Bank of America believes this "mountain of money" could help fuel a year-end stock market rally.
Our Chart of the Day is from Bank of America, which shows that investors are still piling into money market funds amid a period of rising interest rates.
The chart shows that net assets of all money market funds has hit a record high, topping $5.625 trillion last week, as investors seek to gain a risk-free rate of 5% rather than putting their money at risk by buying stocks or long-duration bonds.
"Investors love cash," Bank of America's Stephen Suttmeier said in a Tuesday note.