Assets in money market funds soared to more than $6 trillion this year, a record high. Where this money will go and whether it will flow out of these funds is a matter of debate among investors and analysts. Some investors say Americans are bound to spend some of their hoarded cash on things like concerts and restaurants. Some believe that some of the shares may eventually become stocks.
“If you’re earning a decent yield on cash assets in the money market, and those rates start to fall, look for ways to find more profitable assets,” said Joe Amato, chief investment officer at Neuberger Berman. It will be,” he said. .