The divergence between professional money managers and retail investors continued this week, as the pros again flocked to cash at a record pace.
What happened: Data from the Investment Company Institute shows institutional asset managers moved $163 billion into money market funds in the week ending April 1, the second-largest move to cash ever recorded, dating back to January 2007.
- Retail investors, on the other hand, went to cash at a much lower rate, allocating just $13 billion to money market funds, which barely registered among the 50 largest weekly inflows.
Why it matters: The contrast suggests sophisticated investors remain extremely cautious about the outlook for investment and are still seeking the ultimate safe haven, while retail investors are less bearish.
Flashback: Last week, data showed that investment pros were retreating from risky assets while so-called mom and pop investors bought the dip.
The big picture: A record $4.4 trillion is now held in money market funds. That's nearly $500 billion more than the peak level seen during the 2007–2009 global financial crisis.