More On The "Money On The Sidelines" Lies

CNBC is well aware that if you repeat a lie long enough, it becomes true. The argument: "buy on the dips" as the gobs of sidelined money just can't wait to rush in and lose whatever, well, money it may have left. Alas, it does not work like that. This proverbial money on the sidelines, while it may care about seeing an SPY downtick compliments of a blown fuse at JPM ETF HQ, it is even more concerned about what may happen tomorrow, and whether the risk/return on throwing money into a market that as recently as a year ago showed how it can go down by 50% in a very short amount of time, justifies the risk of being unemployed tomorrow.

We present a comparison of cash currently in money market accounts (MMFA Index), which incidentally is now lower than it was before the Lehman bankruptcy: if anyone "on the sidelines" was spooked by that particular event, they are now over it, and U-6 unemployment. To say that this "capital" will further flow into equities which have already had an unprecedented and purely government backstopped 50% ride up, even as the general American public has no confidence it will have a job tomorrow, is misleading, flawed and representative of weapons grade stupidity.