It seems you have JavaScript disabled.

Ummm.. Yeah... I'm going to have to ask you to turn Javascript back on... Yeah... Thanks.

equity holdings

One of the easiest and most convincing arguments that one can make right now is that US investors are abandoning stocks and flocking to the perceived safety of bonds. It is easy to point to the fund flows which show week after consecutive week of outflows for US equity mutual funds and gargantuan positive inflows for bonds.

The chart below shows the stark dichotomy in cumulative flows between equity (both US and foreign) and fixed income funds:

cumulative fund flows ICI Sep 2010

Since January 2007, US retail investors have cashed out an astonishing $262 Billion from domestic equity mutual funds and socked away almost $730 Billion into municipal and taxable bond funds. So it is understandable why someone looking at this chart would start to believe that the fabled US equity culture is over.

But as I wrote late last year, it is too soon to declare an end for the "cult of equities". If instead we look at the relative holdings of US equities, we see that the average US investor has still got skin in the game. The chart below shows US stock holdings relative to total household financial assets (click to see a larger graph in a new tab):
Continue reading 'Rumors About The Demise Of US Equity Culture, Premature'

Technorati , , , , , , ,

Trend TV

Recent Comments

  • Parsha : Vahid, LOL!!!!! NAZI (Faramarz/Elham) VAHDATSHOAR is talking about third world mentality but is running away from…
  • Parsha : Vahid, Hope all is well. Awesome reply! Regards, Parsha…
  • VAHID : Bijan….. Yup u got it… NAZI = Franz “the clown” Shoar and sometimes his wife…
  • Bijan : Nazi Shoar! When you talk about risk management, capitalist, US etc I unwittingly have to think…
  • Nazi : Bijan, I think your expectation from the beginning has been wrong. For trading of stocks and…
  • Nazi : Vahid, I am glad that at the end of day at least you learned one thing…
  • Bijan : Hi all I have posted some time ago here and thereafter not anymore. Still, I’ve followed…


 Or subscribe through email:


The contents of this website are presented for informational purposes only. They should not be viewed as investment advice, nor a solicitation to buy or sell any financial securities. Neither,, its owners, and/or its representatives are registered as securities broker-dealers or investment advisors with any securities regulatory authority, in any jurisdiction.

4 free videos - market analysis