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As goes January?

Foreigners and funds buy US stocks

Market clockwork from former times

Foreign investors and mutual fund shareholders were the primary buyers behind the Bear Market Recovery of 2009. Stock buybacks had disappeared, a significant modification in investor/issuer behavior that had been seen since 1982 and SEC Rule 10b-18.

The rally hit a peak in January 2010, reminding many of the saying, “As goes January, so goes the year”.

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

Mark-to-market nonsense

Banks, by their nature, are insolvent, requiring government guarantees of their liabilities to protect against bank runs. Over the last fifty years, the percentage of bank liabilities guaranteed by the government has fallen considerably, while banks, free from the shackles of the Glass-Steagall Act, have become increasingly complex.
More ...

US Politics

The decline of mainstream media

In September 2009, President Obama dominated television in his attempt to sell his government-run health plan, despite massive public opposition. Mainstream media has falling revenues and market share as people turn to unbiased sources. 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

Working off the US trade deficit

Foreigners hold $16.8 trillion in US financial assets as a result of selling more goods to Americans than they buy from them. Since the 'deficit' is in dollars, the US has no problem in 'paying it off'. More ...

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

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February 2010
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Stock Quotes

DJIA11428.56  chart +0.16%
NASDAQ2624.91  chart -0.48%
S&P 5001240.46  chart +0.00%

Ftse 1005860.75  chart +0.82%
Dax7029.39  chart +0.33%
Cac 403892.44  chart +0.91%

Nikkei 22510293.97  chart +0.00%
Hang Seng Index23350.86  chart +0.14%
Straits Times Ind3183.75  chart +0.04%

Eur To Usd1.34  chartN/A
Usd To Jpy83.47  chartN/A
Gbp To Usd1.59  chartN/A

2010-12-13 16:03