US households are sitting on a massive cash pile despite record equity exposure: Household equity holdings are up to a record ~$72 trillion. This is $18 trillion, or +33%, above its long-term trend from 2009 to 2019. Household stock ownership has more than doubled since 2020. Meanwhile, cash and cash equivalent holdings are up to $20 trillion, an all-time high. This exceeds the long-term trend by $5 trillion, or +33%. By comparison, households also own a record $11 trillion in debt securities such as bonds, $2.2 trillion, or +25%, above trend. American households have never had a bigger cash buffer.(The Kobeissi Letter)