It was supposed to be the year of the great money-market exodus.
Between Federal Reserve interest-rate cuts and the rally in stocks and bonds that would naturally follow, all the elements were there, Wall Street prognosticators said, to prompt investors to yank cash out of money-market funds en masse.

They were wildly off. For while the rate cuts came and stocks soared, companies and households have kept shoving cash into money funds, pushing the total assets held in those accounts above $7 trillion this week for the first time ever. The relentless rush into those funds — which buy Treasury bills and other short-dated instruments — underscores just how attractive benchmark rates above 5% have been for an investor base that had grown accustomed to them being closer to 0% this century.

Even as those rates now slide to 4.5%, money-market funds are still throwing off a steady stream of nearly risk-free revenue that is bolstering the finances of many households and offsetting to some extent the damage that rate hikes have caused in other parts of the economy. And with signs mounting that the Fed may not cut benchmark rates much more, many on Wall Street are now predicting that Americans aren’t going to fall out of love with cash any time soon.

bloomberg.com - Fed cuts powerless to stop historic rush into money market funds

It’s not just Buffett who thinks cash is the best option currently.