Randall Forsyth on stimulus checks going into the stock market

While institutions reshuffle portfolios, it will be interesting to see what individuals do with their $1,400 stimulus payments.  Some $242 billion was deposited into Americans’ bank accounts on Wednesday, the biggest “helicopter drop” to date, write Jefferies economists in a research note.  At the same time, Bank of America strategists point out, a “staggering” record $68.3 billion flowed into equity funds in the past week.  It seems that at least some of the stimulus may be going for speculation, rather than spending. 

~ Randall Forsyth, "Bond Vigilantes' Return Won't Cause Another Black Monday," Barron's, March 20, 2021

Randall Forsyth on investing and risk taking

It has been observed that there are bold pilots, and there are old pilots, but there aren't any old, bold pilots.  The same may be said for investors.

~ Randall W. Forsyth, "Up & Down Wall Street," Barron's, October 23, 2021

Randall Forsyth on fund flows going into cryptocurrencies

One would have thought that the Fed’s rapid monetary expansion [$4.2 trillion increase in M2 money supply over the past year] to help spur the economy’s recovery would have lifted gold.  But the main beneficiaries have been cryptocurrencies.  According to a J.P. Morgan report, $20 billion flowed out of gold exchange-traded funds in the most recent two quarters, while $7 billion went into Bitcoin funds. 

~  Randall Forsyth, editor of the Up & Down Wall Street column, Barron’s, April 10, 2021

Randall Forsyth on record corporate bond issuance

More than $1 trillion of investment-grade corporate bonds have been brought to market this year, at twice the year-earlier pace.  High-yield issuance is running more than 50% higher, at $180 billion.

~ Randall Forsyth, Barron's, June 20, 2020