Retail investors in the US stock market are adopting a wait-and-see attitude as cash yields increase

According to Jinshi's report, the SP 500 and Dow Jones have both risen by 16% since late October last year, with the Nasdaq only 5% away from its all-time high. The optimistic sentiment of the Federal Reserve raising interest rates has fueled the upward trend, but for many retail investors, cash is still king. Data from consulting firm Vanda Research shows that in the 10 trading days leading up to January 16th, individual net purchases of US stocks totaled $11.7 billion, compared to a peak of $17 billion in February last year. Small investors have plenty of reasons to temporarily stay on the sidelines and observe. Cash and cash-like instruments continue to offer yields unseen for years; Crane Data's index of the top 100 money market funds currently shows an average yield of 5.16%.