Monday, December 31, 2012

Volumes Near Ten Year Low

Equity volume for the NYSE is closing out 2012 at near a ten year low.  Investors seem to be giving up on the equity markets if this volume data is any indication.

From The Blog of HORAN Capital Advisors
Data Source: NYSE

Related to this low equity volume is the continued flow of funds out of equity mutual funds. The equity outflows appear to be finding their way into fixed income mutual funds.

From The Blog of HORAN Capital Advisors

Lastly, margin debt as of November 2012 is at a level last seen prior to the Lehman crisis. In addition to the high margin debt level, net free credit is also negative. The takeaway from this is these margin investors are mostly fully invested at this point in time, i.e., limited additional cash to push the market higher. Investors should keep in mind that margin debt is a better longer term indicator (at least 1-year) of potential market performance.

From The Blog of HORAN Capital Advisors
Data Source: NYSE


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