Investors are sitting on a huge pile of cash and it is growing by the day. The masses panicked when the so-called Santa Claus rally failed to materialize. What they failed to spot was that Santa was providing the astute player with a lovely shopping list and all the goods were on sale. This January effect was one of the strongest on record and more than makes up for the Santa Claus fail; hence, if there is still time to jump in and buy. Mass Psychology clearly states that the best time to buy is when the masses are ignoring an investment or the stock market is crashing.
Masses Panic over anything and everything. The mass mindset is not restricted to the average investor. Some of the biggest firms are lead by individuals that think like lemmings and we all know that lemmings serve only one purpose; cannon fodder. To date institutions and individuals have poured billions upon billions of dollars into money market funds. As we stated the obvious culprits were; Interest rates, the trade war, government shutdown, Trump investigations and whatever other rubbish you can come up with.
Money market assets surged to $3 trillion this January, the highest level since March of 2010, clearly indicating that the masses as always know nothing and panic at precisely the right time. Well wrong time for them, but right for the big players.