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Weekly Chartology: A Focus On Fund Flows Into Financial Stocks
As Goldman's David Kostin points out, this week's key capital flow observation had little to do with QE2 (which at $600 billion over 8 months, was actually less than the anticipated $500 billion over 6 months), which had a far greater impact on commodity prices as Zero Hedge had expected (and ES was down in gold for the week, and continues to be very much down for the year), and all to do with the Fed's "non-announcement" that it would allow financial firms to recommence dividends. This resulted in a spike in financial shares, which jumped the most in the prior week. In light of Friday afternoon's repeat announcement that a Federal agency (this time the Chicago FHLB) was following in the footsteps of the FRBNY, and claiming Rep and Warranty fraud over $375 billion in RMBS, banks won't be depleting their reserve funds any time soon. But all is fair in war and industry rotation, even if it makes no sense. More to the point, even Goldman advises clients this as nothing but a headfake: "We currently recommend a neutral weighting in Financials although we recognize the positive impact a round of dividend hikes will have on share prices. Our concern relates to the lack of loan demand, slim net interest margins as the yield curve flattens, restrictions on business activity from “Volcker Rule,” Basel 3 capital requirements, and the impact of Fin Reg." But since when did fundamentals matter? These days it is all a question of fund flows, typically those originating from the Federal Reserve.
Full weekly commentary and complete chartology from Goldman:
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Wow. Very nice, ZeroHedge.
Thanks so much.
Those financial shares are more like raffle tickets to help out the putbacks for twits program.
Famous Last Words
"We're not in the business of trying to create inflation...."
http://www.reuters.com/article/idUSTRE6A44EL20101106
It's time to take a moral stand. Disassociate yourself from the elite bankers and politicians. If your customers, relatives, friends work for Goldman, BofA, RBS, JPM. But of all ties with them, tell them you will not associate with them while they commit large scale fraud and cheating against the world. Stop serving the bankers. Make them morally ashamed.
So I don't get it, every week we see a chart showing the OUTFLOW of funds from equities, but in this pdf from goldman shows money flowing into equities.
what gives?
This one goes out to Benny, Timmy and the Inkjets
wow, so blatant..I can't believe there would be some bag holder out there with investment capabilities but not the ability to not read the news and do math. its an awful segment with a glut of bad news..atleast the RMBS shit would make you think aboutit..I guess when you create a market with no risks and Benny's got your back you throw caution out the 33rd floor window...makes me uncomfortable though..jumping out a window with no damn parachute and benny waiting below with open arms saying " I got you, I got you"..ooh well, bombs away!
jesse ventura deeeeeeeeestroyed goldmansachs on his trutv show last nite. nice charts. hehe.
http://www.youtube.com/watch?v=yZlPf8ebwvU
bill murphy (gold antitrust action committee) @ 3:20
nobody would fly with me for a year
I saw this on Youtube - was really interesting to see this presented on MSM.
http://www.youtube.com/watch?v=qsSOoVjLvg0
It was...The Roaring Twenties
http://www.youtube.com/watch?v=Xmqc_wJN4_M
Huge volume came into these stocks on Thursday and Friday:
It is but another unexpected arrow in the quiver of the Fed. I suppose we can see ramps in the SPX next week but how high do you think they can go?
What do you estimate the impact of dividend investors? I personally know quite a few and they seem to "invest" purely for dividends. This news may have more impact on the market than we think right now.
My JPM puts got roasted!
...all looks fine and dandy...but then again, this data comes from the beast that destroys countries, and their own clients get the shaft with a handshake, a smile, and a lecture on being stupid after all is said and done...strange how a coin of silver can kick its ass percentage-wise just by sitting there collecting dust...risky business: "sometimes you just gotta say 'what the fuck' and make your move"...dividends?...lol...save me,dividends, save me!
Looks like the FED just bought some Microsoft shares
http://www.reuters.com/article/idUSTRE6A501K20101106
1.3 Billion Dollars is sure going to buy some gold for Steve!
My long term indicators continue to warn of USD strength and EURO weakness.
http://stockmarket618.wordpress.com