Repurchases of company stock, mostly under the safe harbor exemption from market manipulation provided by SEC Rule 10b-18, set an all time record of $366 billion (net) in 2005. This was 260% of levels in 2004 and 880% of buybacks in 2002. Despite extremely aggressive tactics of corporate management to manipulate stock prices upwards and give […]

Foreign funds created by the record U.S. trade deficit of $726.9 billion in 2005 were channeled mainly into the U.S. bond market. This went a long way towards keeping bond prices up, despite massive net corporate bond issues connected with asset-backed securities (mostly mortgage related) that also set impressive records: $462.9 billion. Foreign investors purchased (net) […]

Net sales of mutual fund shares dropped to the lowest point in the three years 2003-2005, with net sales of $257.5 billion. (See: Federal Reserve flow of funds account F214.) Net sales of mutual funds fell almost 14% from 2004 to 2005. Of net mutual fund sales, the amounts invested in corporate equity fell from 52.7% in […]