What Happens to the $6 Trillion Pile of Cash?

Assets in money-market funds have surged to a record of more than $6 trillion this year. Where this money goes—and if it moves out of these funds—has been a source of debate among investors and analysts. Some investors say that Americans are bound to spend a slice of what they’ve stashed in cash, on things like concerts or restaurants. Others say that some of it could end up in stocks.

“If you are earning decent yields on your money-market cash assets, and those rates start to go down, you’re going to look for ways to seek out higher-returning assets,” said Joe Amato, chief investment officer at Neuberger Berman.

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