This chart shows that since 2020, money market funds surged

This chart shows that since 2020, money market funds and demand deposits have surged by roughly $10 trillion. As it stands, the combined total now amounts to $14 trillion, or about 20% of U.S. stock-market capitalization.

This vast pool of liquid savings has been locked up by high real short-term rates. But as the Fed continues to cut rates, savers will be increasingly compelled to redeploy this liquidity into risk assets. So dont be overly bearish on risk when rates are falling.