Key facts
- New Federal Reserve data provides valuation-adjusted estimates of US financial flows.
- The data is based on measured holdings.
- Equity flows are shown to be modest relative to valuation changes.
The Federal Reserve has released a new dataset offering consistent, valuation-adjusted estimates of US financial flows. This data, derived from measured holdings, provides a clearer picture of market dynamics. Notably, the findings suggest that equity flows have been relatively modest when compared to the significant changes in market valuations, offering a nuanced view of investor behavior and market composition.