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The total money market balance is approaching $8T. Interest rates have been raised in 2022, and many people have decided they prefer the safety of fixed interest rates. This amount of cash could present opportunities, as record-high money market assets often precede better-than-average stock returns.  If interest rates come down and money markets become less attractive, investors will have to find higher-yielding opportunities.
 

Source: Board of Governors of the Federal Reserve System (US)
This is the money market balance in the U.S. This graph was produced by Lucas Juery, CFA, CFP^Ⓡ and is not intended to provide financial advice.

Also note that money market balances are usually negatively correlated with the consumer sentiment index. This index is low as people are fearing a downturn in the economy. Therefore, it seems that investors are preferring the safety of money markets to keep their extra savings, bracing for potential volatility in the market.
 

Source: Board of Governors of the Federal Reserve System (US), the University of Michigan
This is the money market balance in the U.S. This graph was produced by Lucas Juery, CFA, CFP^Ⓡ and is not intended to provide financial advice.
 

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