Corporate America gives out a record $1 trillion in stock buybacks
“Corporate America celebrated the first full year under the new tax law by rolling out a record-setting $1 trillion of stock buybacks. US companies, led by Lowe’s (LOW) and AbbVie (ABBV), rewarded shareholders by unveiling $34.4 billion in buybacks last week, according to TrimTabs Investment Research. That lifted repurchase announcements above $1 trillion for the first time ever, TrimTabs said, exceeding the prior record of $781 billion set in 2015.”
USAGOLD note: So what happens when corporate buybacks fade from the marketplace? With corporations feeding $1 trillion in buy-backs into the market, a plausible argument can be made that the market has been artificially juiced by capital injections having little to do with the value and future earnings of companies, but much to do with the power of this application of financial engineering.
Related: The corporate bond bubble is bursting/SafeHaven/Michael Pento/12-18-2018