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You misunderstand. Money doesn't flow into or out of markets on net. Every time a share is sold for $X, a share is bought for $X - they are two sides of the sam
by tedsanders 5y ago
You misunderstand. Money doesn't flow into or out of markets on net. Every time a share is sold for $X, a share is bought for $X - they are two sides of the same transaction.
- Ariarule 5y agoThis misses that the share is an asset _with a monetary value_ even though it's not money itself. It's true but not relevant that various measures of the money supply, M0, M1, etc. are unchanged. The chart in the original article is of Annual Equity Fund flows, which are net values _considering both sides since it includes negative values_ -- a measurement of this supposedly nonexistant flow. While money remains constant from a trade, the stock of equity (in both senses of the term "stock") changes.