U.S. Investors Are Flush With Cash, and Happy to Keep It There

U.S. investors are sitting on a pile of cash. Even with rates now coming down, many are in no rush to move it. Assets in money-market funds reached a record $7.7 trillion last week, with more than $60 billion flowing into those funds during the first four days of the month, according to Crane Data, an industry researcher. The latest rush into money funds began in 2022, when the Federal Reserve started raising rates. The yields on these funds, which typically hold short-term government debt, also rose, giving investors higher returns on their cash than they have had in years....