Archive for the 'Capital Flow Analysis' Category

About the use of national flow of funds accounts in forecasting security price trends …

Rest of world flees US private debt in Q2 2009

According to Federal Reserve Flow of Fund tables for Q2 2009 (F.107 Rest of the World), non-US residents are moving out of US private debt instruments, favoring US Treasuries despite record-low interest rates. The “flight to safety” which started with the Crash of 2009 has accelerated as the economic policies of the Obama administration are […]

What caused US stock prices to rise in early 2009?

The US Federal Reserve flow of funds accounts for Q2 2009 provide a clear explanation of the causes of the recovery in stock prices in the first half of 2009. These statistics show a pattern of behavior quite different from that which has prevailed since 1982. It is too early to say whether […]

Individual investors push stock prices up in Q2 2009

The Federal Reserve flow of funds accounts for US Households (Table F.100) clearly reveal the forces that drove the recovery in equity prices in the first half of 2009. By comparing the flow of funds in the year 2007 (at the top of the bubble), with the flows in Q2 2009, a dramatic shift in investor […]

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