No. of Recommendations: 10
"Michael Burry recently reposted a chart from WSJ AM, that I thought was interesting. The chart shows the cash on the “sidelines” as a percentage of the stock market capitalisation. We have been fed a narrative that there is this huge amount of cash on the “sidelines” that will eventually move into stocks, driving them higher."
I always thought this was silly analysis.
Every time someone moves some of that cash "from the sidelines" and buys stock, there is a seller who is selling that stock and taking the cash and "moving it to the sidelines".
