Market timing must be exhausting. Always moving in and out of the markets based on economic analysis or business headlines must be so challenging.
The accompanying chart shows that money held in money market mutual funds rose to $5.1 trillion in March 2023.
Investors tend to pull money from the financial markets and retreat to money market funds during periods of uncertainty. While there may be some macroeconomic reasons (inflation, interest rates) for the most recent move, the headline about the banking sector's troubles likely influenced the March increase.
With investing, it's critical to "tune out the noise" and focus on what you can control, like your time horizon, risk tolerance, and goals.
Because I can promise you one thing: there will be several more headlines in 2023 that will cause stock prices to react. Market timers will be busy.