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Comment by bko

> Investors have poured almost $900 billion into equity exchange-traded and long-only funds in 2021 -- exceeding the combined total from the past 19 years -- according to analysts at Bank of America Corp. and EPFR Global.

No discussion in the article about where this money came from. My guess is that it came from the direct covid payments and extended unemployment which amounted to ~$1.4 trillion.

Of course personal expenditures went down as well due to covid, but if you look at Personal Consumption Expenditures you'll see it went from $14 bn in Feb 2020 (monthly) to $13.7bn to $12bn in March and April, but it quickly recovered. Today its 16,291, or 10% higher than the 2020-01-01 level.

date PCE MoM diff

2020-01-01 14,770

2020-02-01 14,785 0%

2020-03-01 13,762 -7%

2020-04-01 12,022 -13%

2020-05-01 13,058 9%

2020-06-01 13,889 6%

2020-07-01 14,129 2%

2020-08-01 14,271 1%

2020-09-01 14,482 1%

https://fred.stlouisfed.org/series/PCE

parent bko 5 years ago

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