Tag Archives: flow of funds

Technical Notes for ‘The Untold Story’

This is an appendix for our earlier post, “Where $1 of QE Goes: The Untold Story.” We’ll describe our use of the Fed’s flow of funds data in more detail, in Q&A format.

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Where $1 of QE Goes: The Untold Story

“We don’t understand fully how large-scale asset purchase programs work to ease financial market conditions.” – New York Fed President Bill Dudley “I don’t think there’s any doubt that quantitative easing enabled the rich and the quick. It was a … Continue reading

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Is This What a Credit Bubble Looks Like?

There’s been some buzz recently about a pick-up in business lending. The six largest banks increased business loans at an average annual rate of 8.5% in the first quarter, according to a Wall Street Journal report last week. Other first … Continue reading

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P/E Multiples, Deleveraging and the Big Experiment: Sizing Up the Next Bear Market

We last wrote about stock valuation in August, when we looked at three types of P/E multiples and argued that stocks were more stretched than you would think if you only relied on the simplest measure. Since then, we’ve had … Continue reading

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Breaking Bad News from the Fed’s Z1: Expansions Tend to Explode Near Current Leverage Multiples

In an earlier article, I argued that the S&P 500 (SPY) is more expensive than you might think if you only compared prices to trailing earnings.  I recommended a different approach that suggests today’s valuation is similar to that of … Continue reading

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