Investors often describe cash/money market assets as ‘dry powder’ – resources on the sidelines ready to boost the equity market. However, while the notional dollars in cash are higher than before, it doesn’t have as much power over the stock market. As a percentage of the S&P 500 market cap, the amount of cash is quite small.
It’s important to know that this kind of cash won’t drastically change market trends on its own. We remain committed to strategically managing the risk exposures within your portfolios. By staying informed of these broader economic indicators, we ensure that your investment strategy is aligned with both current market conditions and your long term financial goals.
Big Cash, Little Impact
- We believe the preservation of capital is key to consistent, long-term investment success.
- Our investment approach is grounded in economic theory and backed by quantitative analysis.
- Managing drawdown risk is a pillar from which we build our portfolios.
60-Second Breakdown
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
