“Too many dollars chasing too few goods,” that was Herb Stein’s definition of inflation and it is as good as any. What we’d like to see is too many dollars chasing too few stocks in the upcoming months. There are over $4 trillion in money market funds, versus about $2.5 trillion a couple of years ago. Some of that increase is just that, an increase in the amount of money people feel is an appropriate level of liquidity they need for their well-being. But, part of that money is fugitive stock market money that is hiding-out waiting for the all-clear signal that buying stocks is okay again. There are other pots of money in other liquid alternatives to cash. Sooner or later, this will get back into the equity market or some other growth vehicle. Read more