EDITOR'S NOTE
Cash has been burning a hole in some professional investors’ pockets and now they’re joining the market rally.
Data compiled by Barclays showed mutual funds with “ample dry powder” have started buying stocks again after sitting on the sidelines following the coronavirus-induced market plunge earlier this year, writes CNBC’s Yun Li.
The move back into stocks comes after less-experienced investors — specifically those trading on millennial-favored stock trading app Robinhood — nailed the market bottom and cashed in on the massive rally. 
However, the professionals who are buying stocks again may be joining the party a bit too late.
“Equity flows keep lagging far behind the strong equity market, which suggests that many investors have likely missed the recovery train,” Emmanuel Cau, head of European equity strategy at Barclays, said in a note Wednesday.
The S&P 500 has already rallied back to record territory and is up more than 50% since hitting a low March 23. The broader market index has also popped more than 6% this month.
Those market gains for August will be put to the test on Thursday as Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech from the central bank's annual monetary policy symposium. Powell is expected to outline a new policy framework aimed at bringing inflation closer to the Fed’s 2% mandate.
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