Here’s an update and upgrade to our mid-2011 post.
Lots of noise and imperfections in the Fed’s Flow of Funds data but sure beats the alternative – nothing. The biggest caveat, in our opinion, is the data include holdings of foreign equities by U.S. residents so not a concise measure on how the U.S. stock market is allocated. Also note the household sector includes hedge funds and IRAs.
The table below illustrates a large decline in the percentage of the equity market allocated to private pension funds. No doubt there’s noise here and it may also be partially explained by demographics but the decline over the past twenty years is glaring.
The data also show the growth of mutual funds and ETFs since 1990 as households have reduced holdings of individual stocks and increased allocation into these sectors.
(click here if chart and tables are not observable)
Category: Think Tank
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.