Leaning Into Risk - Sunday Roundup, October 13, 2024

The “cash is trash” talk is back as institutional investors’ cash holdings fell to their lowest level since the beginning of August. Markets have swung sharply this year. AI buzz gave way to doubts over AI spending. Rising unemployment rates in the U.S. sparked recession fears, spurring markets to expect rate cuts as deep as in past recessions. Shifting markets may tempt some investors to sit on the sidelines (or flee to less risky investments) as they await further clarity, but the message from Wall Street is clear: not staying invested during uncertainty could risk losing out on bullish trades.