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Q1 2006

Individual investors avoid equities

Asset Allocation: Net Mutual Fund Sales

Federal Reserve flow of funds accounts for Q1 2006 show the degree to which equity investments have fallen out of favor with individual investors.

In the year 2000, about 80% of the money that flowed to mutual funds was directed to the equity market.

After the crash, by 2002 less than 20% of net mutual fund sales were allocated to the stock market.

Featured articles on inside pages

Stock buybacks

Stock buybacks dry up

Since 1982, US equities have been driven upwards by stock buybacks. Federal Reserve statistics show corresponding sales of stocks as executives exercised options to take advantage of manipulated prices. More ...

Securities Analysis

Managing complexity

Modern capital markets have become so complex that security analysis methods of the 1930s are no longer adequate. Complexity goes beyond financial data to collateral issues such as operations, foreign and domestic taxation, and structural risks. More ...

US Politics

America grows with legal immigration

Legal immigration has resulted in solid growth of the US population, despite declining birth rates and an increasing number of old people. This is good news for investors in stocks and real estate. Illegal immigration appears to be less than 5% of legal immigration, and legal immigration is at an all time high.
More ...

US equities

GAO pooh-poohs a Boomer bust

In 2006, the GAO issued a report saying that the retirement of the Baby Boomers should not have a negative effect on stock prices. This article reviews the GAO reasoning and concludes that the conclusion is not credible. More ...

US Bonds

Bond demand exceeds supply for a decade

Over the decade, 1995-2004, the demand for US bonds of all types has surpassed new bond issues in eight of the last ten years. This is the reason that bond prices have held firm, even in 2003, when net new issues reached almost $1.8 trillion. More ...

World Economy

Signs of US losing its groove?

Thirty years ago, US income from abroad was more than double the amount of income that the US paid to the rest of the world. This year, or the next, this foreign income surplus may disappear forever. Is the US 'losing its groove'? More ...

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Capital Flow Watch has hundreds of articles on economics and investments.

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June 2006
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Stock Quotes

DJIA10340.69  chart -1.03%
NASDAQ2208.89  chart -1.11%
S&P 5001091.84  chart -1.15%

Ftse 1005407.82  chart -0.58%
Dax6117.89  chart -0.60%
Cac 403643.81  chart -1.11%

Nikkei 2259226.00  chart +0.00%
Hang Seng Index21401.79  chart +0.22%
Straits Times Ind3036.09  chart +0.05%

Eur To Usd1.27  chart +0.05%
Usd To Jpy83.78  chart +0.05%
Gbp To Usd1.54  chart +0.05%

2010-09-07 16:04