Posts filed under “Data Analysis”

Record Cash in Money Funds

Fundyi_20061213190104
The WSJ noted that, according to the Money Fund Report
newsletter, "Investors to money-market funds added $21.26 billion in
the week ended
Tuesday, bringing total net assets to a record $2.333 trillion. The
previous record had stood since Dec. 10, 2002."

About 86% of the money came from Institutional investors — $18.32 billion; individual investors contributed $2.94 billion.

This sort of data is always tough to draw conclusions from: We know there is a record amount of cash in Money Markets, but the tough question is why?

I can think of many reasons — none of which have any quantitative support:

• Hugely profitable, cash rich corporate earnings gotta sit somewhere;

• Skittish investors don’t believe the rally, leaving money "safe;"

• Big bonus pools/high earners cash not put to work yet;

• The ongoing option backdating scandal  continues to plague investor confidence;

• There’s always been huge cash on the sidelines, even thru the 1990′s bull market;

iMoneynet, the source of this data, expects to see this cash hoard continue to rise into 2007.

Is this pile of cash significant? That is an interesting question, and one I simply do not know the answer to . . .

>


Sources:
$200 BILLION GROWTH IN INSTITUTIONAL MMFs POSSIBLE IN 2007
iMoneynet, December 1, 2006
http://www.imoneynet.com/articles/articlesFolder/Retail1616/Retail1616.pdf

Money-Fund Assets Hit Record
WSJ, December 14, 2006; Page B8
http://online.wsj.com/article/SB116605609381249620.html

Category: Data Analysis, Economy, Psychology

P/E Ratios as a Buy Signal?

Category: Data Analysis, Earnings, Investing, Markets

Freakonomics author Steven Levitt

Category: Books, Data Analysis, Digital Media, Television

The Not-So-Hidden Truth About Home Prices

Category: Data Analysis, Real Estate

Buh-Bye Goldilocks

Category: Data Analysis, Economy

Blaming Soft Retail on all the Wrong Things

Category: Consumer Spending, Data Analysis, Earnings, Retail

NAR’s Existing Home Sales & Prices

Category: Data Analysis, Real Estate

More Bad Data from the NRF?

I’m kinda dumfounded to see this issue come up time and again, but — there they go again: The National Retail Federation is once again putting out data which has gotten misinterpreted by most of the MSM: “Retailers kicked off the holiday selling season in style as shoppers across the country set their alarms for…Read More

Category: Consumer Spending, Data Analysis, Financial Press, Retail

917 trading days since down 2% day

Category: Data Analysis, Markets, Trading

The Return of M3

Category: Data Analysis, Economy, Federal Reserve