Where did the money go? Wall Street funds are疯狂 selling off tech stocks and fully investing in this crypto sector. Those who understand are already laying low!

Damn, brothers, this feeling is too intense! As soon as I opened the data dashboard, that familiar, hair-raising 2022 vibe hit me right in the face. Remember back when Russia and Ukraine first started fighting, and the market was crying and howling? Now, as soon as there’s a flare-up in the Middle East, Wall Street’s old foxes are acting exactly the same, barely even bothering to change the script.

What are they doing now? One word: run! And I mean run like hell, scrambling and crawling to get away. Stocks? Forget it. Bonds? Toss them aside. Even traditional safe havens like gold are being thrown out like hot potatoes. Guess where they’re putting their money? Cash! Yeah, the most basic, boring cash. Market surveys show that fund managers’ cash holdings jumped from 3.4% last month to 4.3%—the biggest one-month increase in six years. These guys are sharp; they smell something coming. What are they sensing?

The question is, why isn’t gold attractive anymore?

Because this time, the script is different. In past conflicts, everyone frantically rushed into gold. But this time? Oil prices are skyrocketing—Brent crude has surged this month, almost catching up to the 1990s, firmly staying above $100. When oil prices soar, inflation expectations can’t be contained. Once inflation starts rising, can the Fed and the European Central Bank sit still? Rate cuts? That’s just a dream! The market is now betting there’s a 50% chance the Fed will hike interest rates again before October. Europe is even more aggressive—initially hoping for rate cuts, now expecting three more hikes. When rate hike expectations return, assets like gold that don’t generate interest lose their appeal. So, since the conflict started, gold has already dropped over 15%.

So what kind of strange situation is this? Stocks, bonds, and gold—these three brothers—are all falling together. The global stock market has declined 5% this month, and US Treasury yields have been sold off to multi-month highs. Morgan Chase’s strategist team, led by Nicholas, put it bluntly: investors are selling stocks, bonds, and gold all at once just to hold onto some cash.

Holding cash sounds weak, right? But right now, it’s the only thing that feels somewhat safe.

But don’t think this is the end. Although the cash holdings of these institutions have surged, they’re still far from the levels that truly scared the pants off everyone. During the Russia-Ukraine conflict in 2022, or at the start of the pandemic, cash positions peaked at 5.9%. Now, it’s only 4.3%, which is just “a bit nervous,” nowhere near “terrified.” What does that mean? It means if the Middle East situation worsens or inflation data heats up again, they still have plenty of stocks and bonds to sell off for cash. The market’s selling pressure isn’t over yet.

Just thinking about it gives me chills. The market seems to have calmed down after a few days of decline, but the institutions’ defenses are only half-repaired. They still have plenty of room to retreat, and lots of assets to sell. It’s like the oppressive heat before a thunderstorm—you think it’s over, but the dark clouds are still gathering overhead.

So, brothers, don’t rush to buy the dip. In this world, cash is king—this isn’t just a saying. Wait until those Wall Street veterans push their cash holdings to near historic extremes, until they’re truly cornered with nowhere to go, then the market bottom might start to take shape. Jumping in now is likely just giving them a chance to retreat. This market calls for patience—watch more, act less, and protect your principal. Honestly, a fierce trading session is no match for staying home and clutching cash.

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