“We’ve still got a lot of cash, still got a lot of fixed income on the plate,” Subramanian said, speaking to CNBC on Wednesday, speculating that money could make its way into equities once the Fed resumes its rate-cutting cycle<\/a>.<\/p>\n Central bankers trimmed rates twice in late 2024, but have held off on a third rate cut as they assess the impact of tariffs on inflation<\/a>.<\/p>\n But investors have ramped up bets for rate cuts after a weak July jobs report last Friday, betting that the Fed will cut rates<\/a> at its September meeting. <\/p>\n Markets are pricing in a 95.1% chance the Fed could issue a 25-basis-point rate cut at its next policy meeting, according to the CME FedWatch tool.<\/p>\n<\/p>\n The return<\/a> on cash and bonds is also “not great,” Subramanian added, another reason investors could eventually plough cash back into the stock market. <\/p>\n Related stories<\/p>\n Business Insider tells the innovative stories you want to know<\/p>\n Business Insider tells the innovative stories you want to know<\/p>\n Others have also touted the potential boost from record amounts of cash coming off the sidelines. <\/p>\n Tom Lee, the head of research at Fundstrat, said it is one reason he remains optimistic on equities in a note last month. Lee, known as permabull bull on Wall Street, said he still sees the S&P 500<\/a> reaching 6,600 by the end of the year, implying around 4% upside from current levels.<\/p>\n “The bull market<\/a> has proven itself intact,” he wrote, referring to the benchmark index’s record-breaking rally<\/a> in recent months.<\/p>\n Kristy Akullian, the head of iShares investment strategy in the Americas at BlackRock, also referenced the large amount of cash in money market funds recently. <\/p>\n![\"\"\/](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/07\/placeholder.png\")
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