ABCNews.com's "'Cash on Sidelines' Less Than Investors Anticipate: Goldman" says, "Investors could be disappointed if they anticipate tons of money waiting to get back into the stock market, since 'cash on the sidelines' is much less than estimated, Goldman Sachs analysts said. Based on their calculations, net equity inflow from individuals, institutional investors and corporations over the next several quarters could total $600 billion, the analysts said in a research note on Wednesday." The Goldman Sachs "US Equity Views" piece is entitled, "Money Flow: myths & realities surrounding potential equity inflows." Using ICI data via Haver Analytics and Goldman Sachs Global ECS Research, it claims that $1.9 trillion is held in taxable money market funds owned by individuals, from which analysts expect $600 billion in outflows (with half of these going into equity markets). (ICI's latest figures, however, show just $862 billion in retail money funds in total.) While it speculates massive outflows for money funds, the study oddly expects a mere $50 billion in outflows from the much larger $5.8 trillion in savings deposits."
