Grant Cardone Claims A $7 Trillion Opportunity That Can Lift Stocks, Crypto, And Real Estate To New Highs

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Real estate investor Grant Cardone recently laid out a $7 trillion opportunity that can boost asset prices across the board. Stocks, crypto, real estate, and gold are some of the biggest winners.

"$7 trillion [is] sitting in money markets," Cardone said in an X post. "As rates come down, that $7 trillion will go somewhere."

The chart in Cardone's X post demonstrates that demand for money markets has soared over the past year. However, lower rates may prompt people to look for assets that can produce higher returns.

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The Federal Reserve Is Poised To Cut Rates Even More

The Federal Reserve cut rates by 0.25% in September and will meet two more times this year, including this week. Each of those meetings can take off an additional 0.25% from the base rate, which is currently at 4% – 4.25%.

Banks will respond by cutting interest rates on money market accounts, and financial institutions can take swift action if needed. Money market accounts have variable interest rates, which means they can change at any time. Only CDs have fixed interest rates, but that fixed rate is only good until the CD matures.

Fed Chair Jerome Powell's term will conclude in May, which could lead to even lower rates. President Donald Trump has been adamant about rate cuts and may bring on a more agreeable chair to replace Powell. If Trump selects a chair who will cut rates upon his request, it can further reduce money market interest rates.

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The Money Must Go Somewhere

Not all $7 trillion will leave money markets. Some people treat them like emergency savings accounts and want to have some cash available. A lot of the money in these funds is also owned by the government, and one X thread makes the case that most of the money in these funds will stay put.

However, investors may be willing to take more risks if money market rates can't keep up with inflation. Rate cuts further incentivize risk by making it more affordable to borrow money, which will propel most stocks.

Real estate prices also go up during rate cuts since mortgages become more affordable. Finally, alternative assets like crypto and gold benefit from rate drops, since lower interest rates increase the money supply.

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Asset Prices Continue To Soar

2025 has been a good year for investments, with the S&P 500 and Nasdaq Composite reaching new highs. Cryptocurrencies have also performed well, with Bitcoin up by almost 20% year-to-date.

Interest rate cuts should prompt further upside and make investors feel more confident about taking risks. While most of the money market funds belong to the government, lower rates can create enough of a ripple to shift money from high-yield accounts to assets.

Cardone's two favorite assets are real estate and Bitcoin. Lower interest rates should give both of those investments a boost.

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This article Grant Cardone Claims A $7 Trillion Opportunity That Can Lift Stocks, Crypto, And Real Estate To New Highs originally appeared on Benzinga.com

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