As long as equities evoke fear, money will be inanely stored as cash

The equity market is highly erratic, being endlessly disrupted by public health-related uncertainty, deteriorating economic fundamentals and geopolitical risk. As long as this is the case, the additional money created by central banks will be stored in the form of cash and will not be used. We provide a recap of this mechanism. Once the uncertainty affecting the equity market subsides, the money will of course not be destroyed but will be exchanged via share purchases. This give s the equity market considerable upside.