What about those $3,582 Billions

There is no timing technique relating to changes in the amounts of cash held in money market accounts or the corresponding stock market performance. I’ll make it easy for you by listing the values (from ICI - the authority on measuring/reporting mutual fund balances) at year end for the “amount of cash on the sidelines” (aka money market balances) and the S&P 500 balance for the past few bull and bear markets. Try to find a correlation. Try to find what percentage decrease in the cash on the sidelines equates to what percentage increase in the stock market (or vice versa). Good luck. 1994 $ 0.565 trillion S&P 459.27 1995 $ 0.753 trillion S&P 615.93 1996 $ 0.902 trillion S&P 740.74 1997 $ 1.059 trillion S&P 970.43 1998 $ 1.352 trillion S&P 1229.23 1999 $ 1.613 trillion S&P 1469.25 2000 $ 1.845 trillion S&P 1320.28 2001 $ 2.285 trillion S&P 1148.08 2002 $ 2.272 trillion S&P 879.82 2003 $ 2.052 trillion S&P 1111.92 2004 $ 1.913 trillion S&P 1211.92 2005 $ 2.040 trillion S&P 1248.29 2006 $ 2.354 trillion S&P 1418.30 2007 $ 3.107 trillion S&P 1468.36 2008 $ 3.582 trillion S&P 1156.39 disclaimer....above snippet from Seeking Alpha web site.

Actually, I started working on a seasonally adjusted money market cash flow indicator a long time ago. As I recollect, it has some serious potential, but at that time I couldn't get anyone to pay me for it (it was a lot of work) so I gave it up. I would, however commend it to the attention of any enterprising analyst. Mark

There is no timing technique relating to changes in the amounts of cash held in money market accounts or the corresponding stock market performance.

I’ll make it easy for you by listing the values (from ICI - the authority on measuring/reporting mutual fund balances) at year end for the “amount of cash on the sidelines” (aka money market balances) and the S&P 500 balance for the past few bull and bear markets. Try to find a correlation. Try to find what percentage decrease in the cash on the sidelines equates to what percentage increase in the stock market (or vice versa). Good luck.

1994 $ 0.565 trillion S&P 459.27
1995 $ 0.753 trillion S&P 615.93
1996 $ 0.902 trillion S&P 740.74
1997 $ 1.059 trillion S&P 970.43
1998 $ 1.352 trillion S&P 1229.23
1999 $ 1.613 trillion S&P 1469.25
2000 $ 1.845 trillion S&P 1320.28
2001 $ 2.285 trillion S&P 1148.08
2002 $ 2.272 trillion S&P 879.82
2003 $ 2.052 trillion S&P 1111.92
2004 $ 1.913 trillion S&P 1211.92
2005 $ 2.040 trillion S&P 1248.29
2006 $ 2.354 trillion S&P 1418.30
2007 $ 3.107 trillion S&P 1468.36
2008 $ 3.582 trillion S&P 1156.39


disclaimer....above snippet from Seeking Alpha web site.

Already allocated towards repaying credit card bills and mortgage arrears.