• 735 days Will The ECB Continue To Hike Rates?
  • 736 days Forbes: Aramco Remains Largest Company In The Middle East
  • 738 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,137 days Could Crypto Overtake Traditional Investment?
  • 1,142 days Americans Still Quitting Jobs At Record Pace
  • 1,144 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,147 days Is The Dollar Too Strong?
  • 1,147 days Big Tech Disappoints Investors on Earnings Calls
  • 1,148 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,150 days China Is Quietly Trying To Distance Itself From Russia
  • 1,150 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,154 days Crypto Investors Won Big In 2021
  • 1,154 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,155 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,157 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,158 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,161 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,162 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,162 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,164 days Are NFTs About To Take Over Gaming?
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  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