US Equity Market
By John Schroy, on March 8th, 2006 |

Over the last five quarters, the annual rate of dividends paid by US non-financial corporations has fallen by two-thirds, from $462.2 billion to $160.5 billion.
The apparent reason for this negative trend is the intent of corporate management to radically increase stock buybacks in order to boost the value of executive options.
Investment 1995 - 2004
By John Schroy, on February 27th, 2006 |

In 1995, US households held similar amounts of assets in home equity and corporate stocks: US$ 4.3 trillion in stocks and US$ 4.7 trillion in home equity. Over the decade, the situation changed dramatically, so that by 2004, households held US$ 4.8 trillion more in home equity than in corporate stocks.
This difference came about because of the crash in the stock market in 2000-2001 and because of the steady increase in home values throughout the decade. Low interest rates and easier terms on home mortgages pushed prices of residential real estate upwards, while individuals favored indirect investment in stocks through mutual funds over direct holdings.
US Trade Deficit
By John Schroy, on March 31st, 2005 |

Since the 1980s, the US. trade deficit has been a constant force in the American economy, rising more some years than others, while corporate bond yields have been generally falling.
Because rising trade deficits lead to increased demand for fixed income securities, and because issuers have not fully met this demand, the price of bonds has risen for twenty years, while bond yields have fallen.
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