Shareholder Return vs. Free Cash Flow

Shareholder Return vs. Free Cash Flow Thanks to low interest rates, shareholder return has exceeded free cash flow levels again. U.S. companies cannot spend more than they earn indefinitely. Image: Goldman Sachs Global Investment Research

Dividends and Buybacks vs. Free Cash Flow

Dividends and Buybacks vs. Free Cash Flow Dividends and buybacks have exceeded free cash flow levels again, thanks to low interest rates. But companies cannot spend more than they earn forever. Image: Capital Group

GWIM Flows to Cash

GWIM Flows to Cash In the current market turmoil, BofA private clients have raised record amounts of cash over the past four weeks. Image: BofA Global Investment Strategy

U.S. Equity Fund Flows vs. Bonds and Cash

U.S. Equity Fund Flows vs. Bonds and Cash This chart puts into perspective the rotation from equities to bonds and cash, as investors become cautious about further growth. Image: Goldman Sachs Global Investment Research

U.S. Fund Flows Cumulative Since 2018

U.S. Fund Flows Cumulative Since 2018 Fear of a recession has led to a record equity outflows and bond & cash inflows in recent years. Image: Goldman Sachs Global Investment Research

U.S. Fund Flows

U.S. Fund Flows Chart showing the large divergence between flows into equity funds and those into cash and bonds. Image: Goldman Sachs Global Investment Research

Money Market Fund Flows and Probability of Recession

Money Market Fund Flows and Probability of Recession Investors move to safe assets by raising their cash holdings, like 2007/2008. This chart suggests that the probability of a recession in the next 12 months is high. Image: Goldman Sachs Global Investment Research

Flows into Money Market Funds

Flows into Money Market Funds Just like 2007/2008, investors move to safe assets by raising their cash holdings, despite falling rates. Image: BofA Merrill Lynch

S&P 500 Drawdowns

S&P 500 Drawdowns The coronavirus crisis starts as a cash flow crisis, and the current drawdown is not comparable with the dotcom or GFC drawdowns. Image: Nordea and Macrobond