• 20 hours $12M Seized in Massive US-Dubai Money-Laundering Raid
  • 2 days China Launches Digital Yuan As U.S. Dallies
  • 6 days Squid Game Rampage Fails to Lift Netflix Stock After Stellar Earnings
  • 6 days Why Tesla, EV Stocks, Could Remain Highly Volatile For Years
  • 8 days Did Big Bank Earnings Just Signal ‘Real’ Economic Recovery?
  • 9 days The Cannabis Industry Is Looking To Fill The Employment Gap
  • 9 days Apple Capitalizes On Upward Momentum Ahead Of Earnings
  • 12 days Earnings Beat Isn’t Enough for S&P 500 Q3
  • 14 days The New World Tax Order
  • 15 days Is Crypto Finally Ready To Pay The Piper?
  • 16 days Is It Time To Buy The Global Gaming Market Dip?
  • 19 days Even The Mafia Has A Millennial Problem
  • 21 days Zuckerberg Loses Billions in Social Media Outage
  • 22 days ‘Pandora Papers’ Leak Reveals More Financial Crime
  • 23 days US Retail Has A Major Supply Chain Problem
  • 26 days China Has Set Out To Crush Crypto...Again
  • 27 days Top Performing Cannabis Stocks of the Year
  • 28 days Millennials Could Power A 20-Year Bull Stock Market
  • 34 days The Million-Dollar Question: Will China Bail Out Evergrande?
  • 35 days Bitcoin Is Driven By Testosterone
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  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