Post by
BayWall on Jan 18, 2024 12:08pm
$ Trillions sitting on the fence.
Interest rate movements do affect Northland's bottom line. But interest rates also dictate how much money enters/leaves the stock market. NPI can benefit from both forces if rates fall.
Rising interest rates drew trillions of dollars into money-market funds and other cash-like investments in the past two years, with more than $8.8 trillion parked in money funds and CDs as of the third quarter of 2023. Investors are optimistic that with rates poised to fall, people will redirect that money and fuel markets’ next leg higher.
(Wall Street Journal. Jan 18, 2024)