US Households Hold $18.3 Trillion, Corporations $4.11 Trillion in Record Cash Levels

US households have accumulated a record $18.3 trillion in cash, which represents a 40% increase since 2019. This significant accumulation is seen as a drag net of taxes, inflation, and Federal Reserve cuts. In response, asset allocators are favoring credit for yield, commodities as a hedge, and value stocks for upside with a margin of safety. Additionally, U.S. corporations now hold an all-time high of $4.11 trillion in cash, marking a 12.6% increase in the first quarter compared to the prior-year period.