Post #18989 by Umm on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

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"Michael Burry recently reposted a chart from WSJ AM, that I thought was interesting. The chart shows the cash on the “sidelines” as a percentage of the stock market capitalisation. We have been fed a narrative that there is this huge amount of cash on the “sidelines” that will eventually move into stocks, driving them higher."

I always thought this was silly analysis.

Every time someone moves some of that cash "from the sidelines" and buys stock, there is a seller who is selling that stock and taking the cash and "moving it to the sidelines".

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