US Flow of Funds: Equities

US Flow of Funds: Equities December 29, 217 Dr. Edward Yardeni 516-972-7683 eyardeni@ Debbie Johnson 48-663-1333 djohnson@ Mali Quintana 48-664-1333 aquintana@ Please visit our sites at www. blog. thinking outside the box

Table Of Contents Table Of Contents Market Cap & Major Holders 1 Net Purchases by Sector 2 Gross Issues & Buybacks 3-4 Stocks & Buybacks 5 Net Issues by Sector 6 Net Issues by Financials 7 Net Issues: Equities vs. Bonds 8 Household Net Purchases 9 ETFs 1 Institutional Buyers 11-12 December 29, 217 / Equities www.

46 44 42 4 38 36 34 32 3 28 26 24 22 2 18 16 14 12 1 8 6 4 2 Figure 1. US CORPORATE EQUITY ISSUES AT MARKET VALUE (trillion dollars, nsa) Equites at Market Value Total Issues Total Ex Foreign Issues* Wilshire 5 (27.9) S&P 15 (25.5) S&P 5 (22.8) S&P 4 + SP 6 (2.6) Market Cap & Major Holders 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 12/28 12/27 12/29 12/27 46 44 42 4 38 36 34 32 3 28 26 24 22 2 18 16 14 12 1 8 6 4 2 * Excludes holdings by US residents of foreign corporate equities, investment fund shares, and ADRs. Source: Federal Reserve Board and Standard & Poor s. 2 15 Figure 2. US CORPORATE EQUITY ISSUES AT MARKET VALUE HELD BY SELECTED INVESTORS (trillion dollars, nsa) Households* (17.3) Equity Mutual Funds Plus Equity ETFs (12.9) Equity Mutual Funds (1.3) Foreign Investors (6.6) Institutional Investors** (3.7) 2 15 1 1 5 5 9 91 92 93 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 * Includes not only households, but also nonprofit organizations, as well as domestic hedge funds, private equity funds, and personal trusts. ** Includes property-casualty insurance companies, life insurance companies, private pension funds, and federal government retirement funds. Source: Federal Reserve Board Financial Accounts of the United States. Page 1 / December 29, 217 / Equities www.

Net Purchases by Sector 1 5 Figure 3. CORPORATE EQUITIES NET PURCHASES (INCLUDING ETF SHARES) 1 5-5 -5-1 -15 4 3 2 1-1 -2 Households* (81.2) 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 Equity Mutual Funds (-112.9) 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218-1 -15 4 3 2 1-1 -2 4 3 Equity ETFs (35.9) 4 3 2 2 1 1-1 2 1-1 -2-3 4 2-2 -4 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 Institutional Investors** (-85.3) 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 Rest of World (1.) 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 * Includes not only households, but also nonprofit organizations, as well as domestic hedge funds, private equity funds, and personal trusts. ** Includes property-casualty insurance companies, life insurance companies, private pension funds, and federal government retirement funds. Source: Federal Reserve Board Financial Accounts of the United States. -1 2 1-1 -2-3 4 2-2 -4 Page 2 / December 29, 217 / Equities www.

55 5 Figure 4. Gross Issues & Buybacks NEW US CORPORATE SECURITIES ISSUES: TOTAL GROSS ISSUANCE OF STOCKS (billion dollars, 3-month average, annualized) 55 5 45 45 4 4 35 35 3 25 12-month sum 3 25 2 2 15 1 Nov 15 1 5 5 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 Source: Federal Reserve Board. 6 Figure 5. S&P 5 BUYBACKS 6 5 Q2 5 4 3 4 3 2 2 1 1999 21 23 25 27 29 211 213 215 217 219 Source: Standard & Poor s Corporation. 1 Page 3 / December 29, 217 / Equities www.

6 Figure 6. Gross Issues & Buybacks NEW US CORPORATE SECURITIES ISSUES (billion dollars, quarterly using 3-month average, annualized) 6 4 Total Gross Issuance of Stocks 4 2 2 1999 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 22 7 6 5 S&P 5 SHARE BUYBACKS (billion dollars, annualized) 7 6 5 4 4 3 3 2 2 1 1999 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 22 1 5 3 TOTAL GROSS ISSUANCE OF STOCKS MINUS S&P 5 BUYBACKS (billion dollars, annualized) 5 3 1 1-1 -1-3 -5 Total Gross Issuance of Stocks Minus S&P 5 Buybacks -3-5 -7 1999 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 22 Source: Federal Reserve Board and Standard & Poor s Corporation. -7 Page 4 / December 29, 217 / Equities www.

6 4 2 Figure 7. TOTAL GROSS ISSUANCE OF STOCKS MINUS S&P 5 BUYBACKS (billion dollars) Total Gross Issuance of Stocks Minus S&P 5 Buybacks (annualized) Stocks & Buybacks 6 4 2-2 -2-4 -4-6 Corporate Equities: Net Issuance Nonfinancial Corporate Business (4-quarter sum) -6-8 1999 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 Source: Federal Reserve Board and Standard & Poor s Corporation. -8 Page 5 / December 29, 217 / Equities www.

6 Figure 8. CORPORATE EQUITIES: NET ISSUANCE Net Issues by Sector 6 4 4 Total (128.7) 2 2-2 -2-4 -4-6 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 Source: Federal Reserve Board Flow of Funds Accounts. -6 1 Figure 9. CORPORATE EQUITIES: NET ISSUANCE 1 5 Nonfinancial Corporate Business (-387.9) Financial Sectors (347.7) Rest of the World (168.9) 5-5 -5-1 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 Source: Federal Reserve Board Flow of Funds Accounts. -1 Page 6 / December 29, 217 / Equities www.

8 7 Figure 1. CORPORATE EQUITIES: NET ISSUANCE Net Issues by Financials 8 7 6 6 5 5 4 3 4 3 2 Financial Sectors 2 1 1-1 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 Source: Federal Reserve Board Flow of Funds Accounts. -1 6 5 Figure 11. FINANCIAL CORPORATE EQUITIES: NET ISSUANCE 6 5 4 4 3 3 2 Financial Sector Minus Exchange Traded Funds (-112.7) Exchange Traded Funds (46.3) 2 1 1-1 -1-2 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 Source: Federal Reserve Board Financial Accounts of the United States. -2 Page 7 / December 29, 217 / Equities www.

5 4 Figure 12. Net Issues: Equities vs. Bonds NONFINANCIAL CORPORATIONS: NET NEW ISSUES 5 4 3 2 1-1 -2-3 -4 3 2 1-1 -2-3 -4-5 -6-7 -8-9 NFC Net New Issues Bonds (232.3) Equities (-387.9) 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 Source: Federal Reserve Board, Financial Accounts of the United States. -5-6 -7-8 -9 95 85 75 65 55 45 35 25 15 5-5 -15-25 -35-45 -55-65 -75 Figure 13. CORPORATE NET NEW ISSUES: FINANCIAL CORPORATIONS Financial Corporations Total Bonds (54.) ABS Bonds* (-69.) Equities (347.7) 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 95 85 75 65 55 45 35 25 15 5-5 -15-25 -35-45 -55-65 -75 * ABS = Asset-backed securities. Source: Federal Reserve Board, Financial Accounts of the United States. Page 8 / December 29, 217 / Equities www.

5 Figure 14. Household Net Purchases CORPORATE EQUITIES: NET PURCHASES BY HOUSEHOLDS* 5-5 -5-1 Households Equity Purchases: Directly Held by Households (81.2) -1-15 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2-15 * Includes not only households, but also nonprofit organizations, as well as domestic hedge funds, private equity funds, and personal trusts. Source: Federal Reserve Board, Flow of Funds Accounts. 3 25 Figure 15. CORPORATE EQUITIES: NET PURCHASES BY MUTUAL FUNDS 3 25 2 2 15 15 1 1 5 5-5 -5-1 -15-2 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 Source: Federal Reserve Board Flow of Funds Accounts. -1-15 -2 Page 9 / December 29, 217 / Equities www.

5 475 45 425 4 375 35 325 3 275 25 225 2 175 15 125 1 75 5 25-25 Figure 16. CORPORATE EQUITIES: NET ISSUANCE vs. PURCHASES OF ETFs Net Issuance* (46.3) Purchases** (35.9) ETFs 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 5 475 45 425 4 375 35 325 3 275 25 225 2 175 15 125 1 75 5 25-25 * Includes all ETFs. ** Equity ETFs only. Source: Federal Reserve Board Flow of Funds Accounts. 4 35 Figure 17. CORPORATE EQUITIES: NET PURCHASES BY MUTUAL FUNDS & ETFs 4 35 3 3 25 2 25 2 15 15 1 1 5 5-5 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 Source: Federal Reserve Board Flow of Funds Accounts. -5 Page 1 / December 29, 217 / Equities www.

Institutional Buyers 3 Figure 18. NET PURCHASES OF US CORPORATE EQUITIES: PENSION FUNDS 3 2 2 1 1-1 -2 Pension Funds Private (-122.2) -1-2 State & Local (-126.5) -3-3 -4 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 Source: Federal Reserve Board, Flow of Funds Accounts. -4 15 Figure 19. NET PURCHASES OF US CORPORATE EQUITIES: LIFE INSURANCE COMPANIES 15 1 1 5 Life Insurance 5-5 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 Source: Federal Reserve Board, Flow of Funds Accounts. -5 Page 11 / December 29, 217 / Equities www.

4 Figure 2. NET PURCHASES OF CORPORATE EQUITIES Institutional Buyers 4 2 Institutional Investors* (-211.9) 2-2 -2-4 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2-4 * Includes property-casualty insurance companies, life insurance companies, private pension funds, state & local retirement funds, and federal government retirement funds. Source: Federal Reserve Board, Flow of Funds Accounts. 3 2 Figure 21. NET PURCHASES OF CORPORATE EQUITIES 3 2 1 1-1 -1 Rest of the World (1.) -2-2 -3-3 -4 94 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 Source: Federal Reserve Board, Flow of Funds Accounts. -4 Page 12 / December 29, 217 / Equities www.

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