There are big cracks in a $7 trillion bull case for stocks to keep rising.

1. Bullish strategists often cite a record $6.9 trillion in money market funds as potential fuel for stocks.
2. But the surge in money market cash might not be because investors are waiting to pile into stock.
3. Potential dip buyers don’t see any bargains just yet as the stock market declines on worries of fading economic growth

Wall Street strategists in the last year have pointed to a key reason stocks are likely to keep pushing higher: the mountain of cash on the sidelines.

There’s a record $6.9 trillion in money market funds, according to data from Bank of America. The theory goes that as soon as the stock market sees a compelling dip, investors will rush in, deploying their cash and preventing any downturn from spiraling out of control.

The idea gained steam in September when the Federal Reserve started cutting interest rates, which made holding cash slightly less attractive. The hope was that as yields on safer assets came down, investors would flock back to the stock market and spur a fresh run of gains.

Source: FINANCE.YAHOO