>Does anyone know or know where to find any study of the importance of US
>company stock buybacks, plus the importance of global money fleeing Asia
>and "emerging countries" generally, on the rise in stock prices? In the
>form, let's say, of a percentage rise in stock prices due to these factors
>active on the demand side of the market? I should say, stock buybacks
>affect both the demand and supply side, increasing the former and reducing
>the latter, for a "double hit."
>Thanks for any help on this,
Here are the equity numbers from the flow of funds accounts. The 1998 figures are the first three quarters annualized. Since a lot of the money coming out of Asia is repatriated U.S. capital, it probably won't show up as foreign purchases.
Note that nonfinancial corporations retired $445 billion more than they issued, making them major buyers rather than the sellers that this bookkeeping convention assumes.
Barron's says the household numbers - showing sustained selling - are a crock, but who dares argue with the Fed?
Doug
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US stocks, issues and purchases by sector cumulative totals, $ billion, 1994-98
issues -231.51
nonfinancial corporations -445.09
foreign issues purchased by US res 194.62
financial sectors 18.96
purchases -231.51
households -1,583.08
foreign purchases 139.53
banks & savings institutions 6.40
bank personal trusts 90.90
life insurance companies 270.35
pension funds 191.42
private -39.48
state & local government 230.90
mutual funds 682.35
closed end funds -12.57
other -16.82