Trillions of funds may enter the market! Citadel Securities: Year-end rally in US stocks may far exceed usual levels.

Scott Rubner, head of stock and stock derivatives strategy at investment bank Citadel Securities, stated that the US stock market appears ready to continue its record-breaking rally - and might even accelerate its usual year-end gains. In a report to clients, the analyst highlighted multiple strong catalysts that are expected to boost the stock market. He listed strong earnings reports so far, bullish retail investors, and over $7 trillion in money market funds that may move into the market as yields decline. Additionally, there are seasonal factors that typically lift the stock market as the year-end approaches. His conclusion is that there is a risk of missing out on gains in the coming weeks, and investors should position themselves to profit. "Fund flows, positioning, and seasonal factors all provide favorable support for risk assets," he wrote. "Given corporate earnings resiliency, reduced volatility, and ample off-market liquidity, the path of least resistance for the market remains upward until Thanksgiving - although the fourth-quarter gains may come earlier and be stronger than usual."