Cash On The Sidelines

We hear that every week.  “There’s still a ton of cash on the sidelines.  We’ve got to see Cash on the Sidelinessome of that cash on the sidelines to come in”……..but have you ever asked yourself if it’s true?  This from an Annaly Capital blog  makes me believe there has been cash coming in from the sidelines.  Yes it decreased dramatically with the overall market selloff  but it was always there.  The problem becomes once you consider inflation adjustments and massive write-down, the picture becomes somewhat skewed.  So what’s a better way to judge?

Cash as percentage of  debtWhen you consider cash as a percentage of overall debt, the picture is startlingly different.  Makes me glad I don’t watch much financial television channels during trading hours.

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