SOURCE: TrimTabs Investment Research

February 15, 2006 13:49 ET

New Savings and Investment Flow Indicator Measures Highest Growth Since 2000 as Published by TrimTabs Investment Research

SANTA ROSA, CA -- (MARKET WIRE) -- February 15, 2006 -- TrimTabs Investment Research today announces TrimTabs Savings and Investment Flow, a new indicator measuring the total amount of cash that consumers add to savings and long-term investment vehicles. "We believe economic forecasting begins and ends with the consumer because personal consumption expenditures account for more than 70% of U.S. GDP," said Madeline Schnapp, Director of Macroeconomic Research. "At $612 billion, this indicator is at its highest point since 2000 and is up over 41% since reaching bottom at $434 billion in 2002. The strong growth we see over the past two years bodes well for the U.S. economy and the U.S. stock market."

As Figure 1 demonstrates, the trend of TrimTabs Savings and Investment Flow from 2000 to 2005 closely tracks the contraction and expansion of the U.S. economy, which is not visible by plotting the individual aggregates alone.

"The build-up of cash in M2 savings and large-denomination CDs since 2003 and the recent slowing of the real estate market are bullish for U.S. equities," adds Schnapp. During the first four weeks of January, TrimTabs Savings and Investment Flow totaled $75 billion, which was 82% higher than the total during January 2005.

"We have long tracked the Federal Reserve's money supply data, particularly M2 savings," said Charles Biderman, Chief Executive Officer of TrimTabs Investment Research. "While this data is useful over the long-term, its short-term volatility limits its value. We've developed TrimTabs Savings and Investment Flow to measure consumer cash more fully." TrimTabs Savings and Investment Flow is included in Schnapp's weekly publication, TrimTabs Personal Income and Consumer Cash Flow Analysis.

Additional charts available on request.

Madeline Schnapp is Director, Macroeconomic Research, and Editor of TrimTabs Personal Income and Consumer Cash Flow Analysis and TrimTabs Monthly Employment Analysis. She is a frequent speaker in the financial industry. TrimTabs Investment Research is the only independent research service publishing detailed daily coverage of U.S. stock market liquidity, including mutual funds and exchange-traded funds, as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990. See www.TrimTabs.com.

Contact Information

  • Contact:
    Madeline Schnapp
    Director of Macroeconomic Research
    +(1) 707-829-8811
    Email Contact

    Charles Biderman
    Chief Executive Officer
    +(1) 707-527-1501
    Email Contact