According to data from Bank of America, short-term bonds in the 🇺🇸 have witnessed a record outflow of funds over the past three months.

There are two possibilities:

Interest rates decrease: Money is loosened, and other assets appreciate, prompting investors to sell and invest in different assets.

Interest rates decrease, money is loosened, inflation rises, and the interest rates on short-term bonds no longer provide adequate protection. Investors then sell to acquire other assets that better hedge against inflation.

In summary, there has been a hunt for assets in the market over the past three months.

The biggest deception in the financial market lies in the question: Where does the money come from during economic difficulties?

The truth is that money exists everywhere: it can be printed, the Federal Reserve (FED) buys bonds, the wealthy hold money, and it exists in various forms such as money market funds (stable securities), stablecoins, and low-interest-rate bonds. The real question is not where the money comes from, but rather when investors choose to invest