As equities keep rising and more importantly to me, not falling, cash just has to make its way into the market.
Underperformance makes big hedgies do crazy things. They chased up Bitcoins, they chased up biotechs and maybe now they chase up the ‘safety ‘ cash rich tech stocks like Cisco, Microsoft and even Apple. It’s almost the opposite of what you expect should happen as the FED and Global governments keep interest rates low.
Microsoft has been on a tear of late. Maybe the market knows something I don’t know…but I doubt it. It could just be that the limited perceived downside and the 3% dividend is just too good to finally ignore for funds with bazillions of real cash dollars on the sidelines earning zilch.
For those in the Microsoft as cash trade, the last few weeks have been beautiful…you could see a lot of this happen if the market just holds it’s ground or drifts slightly lower.
These big tech brands would not just get cash from American Funds as they are so well known globally.
Thanks VCUTrader for helping me start thinking harder about this trend possibility.