• 1 day Big Business’ New COVID Initiative: No Jab, No Job
  • 3 days The Most Interesting Stocks Of Earnings Season, For Better or Worse
  • 5 days Chinese Stocks Rebound After Regulatory Scare
  • 7 days Apple Stocks Falls After Blowout Earnings Report
  • 7 days The 5 Biggest IPO Disasters Of 2021
  • 8 days Crypto-Based ‘Shadow Financial Market’ Spooks Regulators
  • 11 days Ireland Balks At Biden’s Global Tax Plan
  • 14 days Robinhood To Trade On Nasdaq Targeting $32B Valuation
  • 18 days Facial Recognition Is Watching You
  • 19 days Biden’s $3.5T ‘Human Infrastructure’ Workaround
  • 19 days The Fed’s $3 Trillion Headache
  • 22 days Why Bitcoin Could Struggle To Recover After Epic Crash
  • 22 days Wells Fargo Back In The Spotlight Over Personal Loan Cancellations
  • 23 days Delta Variant Real Threat To Economic Recovery
  • 26 days JEDI Drama Continues With Microsoft Contract Cut
  • 28 days DiDi Shares Take a Beating From Chinese Regulators
  • 29 days Thousands Of Companies Hit In Latest Ransomware Attack
  • 29 days Jobs Report Has Big Numbers, But Still Big Problems
  • 30 days Robinhood’s ‘Mission’ Questioned in $70M Fine
  • 33 days Didi Just Went Public, And Uber Is Loving It
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Just Following the Money

No, we're not talking about some investigation into a political or corporate scandal. We are talking about the flow of funds into corporate equities and what the historical record shows. The Federal Reserve publishes the Flow of Funds Accounts of the United States in their Z.1 release the third month of each calendar quarter. The quarterly data for the third quarter of 2004 was released on December 9 of this year. The data for the following chart can be found in Flows Table 213.

Chart Notes:

  • Flows for the bottom panel of the chart are composed of the following: Mutual Funds, Closed-end Funds, Exchange Traded Funds (the Fed's data begins in 1993) and Broker/Dealers.

  • Flows are shown as a combined total of the four categories both quarterly (orange line) and a four quarter sum (columns).

  • Prior to the launch of the GREAT BULL MARKET in 1982, flows are hardly recognizable in the bottom panel.

  • The surge to all time highs by the S&P 500 Composite in 2000 was accompanied by record inflows into corporate equities.

  • The peak of quarterly flows took place in the first quarter of 2000.

  • The third quarter of 2002 recorded net outflows on a quarterly basis.

  • The four quarter sum reached a new all time record in the first quarter of 2004 surpassing the previous high recorded in the third quarter of 2000.

  • The four quarter sum in the second quarter of 2004 is the current peak.

  • The overall pattern of the four quarter sum roughly correlates to the pattern of the S&P 500 Composite.

  • Now, if our crystal ball could only tell us what flows are doing currently and will do looking forward.

Back to homepage

Leave a comment

Leave a comment