From Nasdaq:

In a recent podcast, Motley Fool discussed the high amount of cash sitting in money market funds and CDs, totaling 8.8 trillion, and its potential impact on the stock market due to recent interest rate policies. Blackrock and Fidelity are capitalizing on new Bitcoin spot ETFs, with Blackrock’s already having $1 billion in inflows, potentially hurting exchanges like Coinbase. Earnings updates from Prologis, Taiwan Semiconductor, Morgan Stanley, and Goldman Sachs were shared, along with two stocks worth watching: Globus Medical and RPM International. Additionally, best-selling author Dan Pink applied ideas from his books to AI, employee motivation, and the modern office. In terms of financial investment, Motley Fool advises against investing in Coinbase Global due to their own analysts identifying 10 other stocks that they believe offer higher potential returns. The valuable advice and guidance on building a successful investment portfolio is the primary focus of their Stock Advisor service.

The Wall Street Journal reports that 8.8 trillion dollars are sitting in money market funds and other forms of cash, due to low interest rates creating fewer opportunities for investment growth. This high amount of cash on the sidelines potentially supports the stock market, acting as a hedge and adding a layer of support for investors. However, investors, particularly those who are older or were hurt by the 2022 bear market, are unlikely to jump back into the market quickly, creating stickiness in the cash’s movement back into the market. Dylan Lewis and analysts argue that interest rate policy changes are often not a reason for investors to move in and out of the market, emphasizing the importance of maintaining a long-term investment plan.

The recent approval of Bitcoin spot ETFs by the SEC has led to major firms like Blackrock and Fidelity quickly capitalizing on the opportunity, with Blackrock’s Bitcoin ETF already having 1 billion dollars in inflows. While this is good news for the firms and those eager to see more crypto adoption, it may have negative implications for trading platforms like Coinbase and Robin Hood, which depend on fees and trading volumes for revenue. The recent introduction of Bitcoin ETFs has already caused Coinbase’s stock to decline by almost 25%, prompting concerns of further downside.



Read more: Do Investors Have Too Much Money Out of the Market?