Yet there’s less money in the market right now than there was during the 2007-2009 recession as measured by the value of money market assets, said Brent Schutte, chief investment strategist at Northwestern Mutual.
“Money market fund levels are still just at levels of 2009, even though they spiked all of last year,” said Schutte.
These fund assets now stand at $3.6 trillion, the highest level in more than 10 years, but still below the $3.9 trillion peak in January 2009.
Investors pulled their cash out of the market in droves during the recession caused by the financial crisis. The economy recovered, and the S&P 500 has rallied more than 250% since then. But money market asset levels show that some investors are still cautious.
The US market remains a goldilocks investment environment where everything is just right with a relatively strong economy coinciding with low inflation, Schutte said.
But the more investors who get off of the sidelines and back into the market, the better it is for stocks: “There’s still a lot of cash on the sidelines, which is why I think markets could still move higher,” Schutte told CNN Business.
This means investors shouldn’t worry about the market’s almost daily all-time highs and should jump on the bandwagon.