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Why a ‘wall of money’ is unlikely to flood into stocks when the Fed cuts rates, this Goldman strategist says

1. U.S. stocks are near record highs; DJIA closed 0.1% lower. 2. Investors await Fed Chair Powell's speech at Jackson Hole summit. 3. Resilient second-quarter earnings support stock market optimism. 4. High cash levels in money-market funds may limit stock allocations. 5. Rate cut odds for September are at 83.2% as of Monday.

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FAQ

Why Neutral?

While positive earnings drive optimism, concerns about cash allocations temper bullish sentiment.

How important is it?

DJIA's performance is closely tied to Fed actions and economic outlook, indicating moderate impact.

Why Short Term?

Immediate focus on Powell's speech may lead to temporary volatility but long-term trends remain stable.

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