The “Dry Powder” Myth: Are We Really Awash in Hesitant Liquidity?

Cash on the sidelines. Dry powder. Stored liquidity.

These and other terms give the impression of vast piles of cash or cash-equivalent assets held in static storage. According to these thoughts, investors armed with money might stand ready to acquire real estate properties whenever market volatility stabilizes, and the Federal Reserve starts cutting its Effective Federal Funds Rate (EFFR).