Wall Street just pulled off a massive “dash from cash.”
Goldman Sachs says investors made a huge allocation shift last week, dumping money market funds and rotating aggressively back into global equities.
Cash is getting drained fast
Goldman’s data shows net flows into global equity funds surged, led by a monster jump in US and emerging markets equity inflows.
“We saw strong net flows into global equity funds last week, led by stronger inflows into US and EM equity funds (+$71 billion vs $2 billion in the previous week) — more than 35x-ed the flows,” wrote Goldman Sachs’ Gail Hafif, Brian Garrett, and Lee Coppersmith.
That is not a gradual rotation. That is a hard pivot.
And it lines up perfectly with what traders have been feeling: cash is starting to get redeployed.
The flip side: money markets just got hit
While equities got flooded with capital, cash piles shrank.
Goldman noted that money market fund assets fell by $62B, which they flagged as:
“This is the 3rd largest level in our dataset (!).”
That’s the signal.
People are not just “buying dips.” They are taking real dry powder and putting it to work.
Goldman’s view: limited downside, more relief rallies
Goldman is still bullish on US stocks from here, arguing the market setup favors contained pullbacks followed by bounce-back rallies.
They see “the case for contained selloffs coupled with relief rallies as the most likely path forward in the near term.”
In plain English: this is still a buy-the-dip tape until something breaks.