If you are anything like me, or many other market observers, you have to be at least a little bit impressed with the U.S. equity market’s recent run. As the first half of 2014 draws to a close, the S&P 500 is up about 6% on the year and 22% on a trailing twelve-month basis.

May and June were “supposed” to bring heightened volatility and increased odds for some rocky markets. However, these two months have been anything but volatile, with the VIX hitting seven-year lows during June. Much has been written over the scarcity of 1% moves higher or lower for the SPX in 2014.

The markets have also kept on making new all-time highs, albeit fitfully, since the first new all-time high of this cycle was achieved in May 2013.

What has also been impressive is the daily resilience of the markets, seeming to shake off any piece of “bad news.” How often have you seen recently a headline at the market’s close that has said, “Major indices reverse early losses to finish slightly in the green”? (That has actually occurred in twelve of the thirteen June up trading days.)

I am curious about “who is buying” this market? Logic would say that during the sixth year of a bull market, most investors—institutions and individual investors alike—should already be fairly well-allocated to equities, if ever they were going to be. However, for the market to continue to go up as it has, “someone” is obviously buying and bidding prices higher at a significant rate.

Who is it? I thought it might be of interest to take a quick look at some of the evidence.

Read the rest of the report…

All the best,

David Wismer

Flexible Plan Investments

Since 1981, Flexible Plan Investments has focused on preserving and growing capital through a robust active investment approach combined with risk management. Headquartered in Michigan, FPI offers a wide array of strategies and services that help financial advisors build their business and retain clients. More importantly, FPI helps hundreds of clients achieve their long-term financial goals.