CNBC Pro

Investors with too much cash are jumping into stocks, joining Robinhood crowd to boost market

Share
People visit the Charging Bull Statue during Covid-19 pandemic in New York.
Tayfun Coskun | Anadolu Agency | Getty Images

(This story is for CNBC Pro subscribers only.)

Investors who amassed huge piles of cash amid the coronavirus-triggered market turmoil have started buying stocks again and the money still on the sidelines could give risk assets a further boost, according to Barclays. 

"Mutual funds thus have ample dry powder to buy equities, given that their cash holdings, in USD terms, are still near record high," Emmanuel Cau, Barclays' head of European equity strategy, said in a note on Wednesday. "As long as the recovery in activity carries on, despite the persistent uncertainty and the elevated tail risks, rising flows could continue to provide support to equities."

More In Pro Insight

CNBC ProMorgan Stanley has high conviction these stocks will gain on earnings
CNBC ProHere's what could keep boosting solar, hydrogen and other clean energy names
watch now
VIDEO03:51
CNBC ProEuropean markets to be driven by 'spectacular' earnings in coming weeks, strategist says