The amount of cash held outside of the markets has spiked this year. Similarly, the last spike like this was in 2008/09.

 

Cash moving back into the markets was supportive as the DOW went on to have 6 positive and strong years in a row (compounded at 13.4% over those 6 years).

 

We suspects the same scenario, at a faster pace this time, with support later this year and fully in 2021+.

 

Cash will be trash in the zero percent world. All positive margin businesses will have a bid for them. Risk Free assets have become return free assets, and we all have to assume and manage risks.

 

How we behave is very important: We want to buy the market dips and the good companies that have not participated in the recent bounce-back rally (almost anything with a positive margin)