Bloomberg analyst: S&P 500 rises in sync with MMF, market 'bullets' abundant but market entry may require interest rate cuts to trigger According to TechFlow, on June 29th, Eric Balchunas, a senior ETF analyst at Bloomberg, posted on X platform that the S&P 500 index is currently at a historic high, and the asset size of money market funds (MMFs) has also reached a new high. This "stock market and cash coexisting high" structure forms a sharp contrast, but for bulls, it means that there is still a lot of "dry powder" that has not yet entered the market. Eric Balchunas believes that the significant return of funds to the stock market may require interest rates to drop below 3%, as investors are more inclined to hold stable net worth and risk-free commodity funds in the current 4% yield environment, rather than bond ETFs. The significant pullback of the bond market in 2022 has weakened investors' trust in traditional bonds, leading to the replacement of traditional bond allocation by monetary funds to some extent. In addition, macroeconomic uncertainty in the United States (including Trump related policy factors) has intensified the wait-and-see sentiment of funds.