MCViewPoint

Opinion from a Libertarian ViewPoint

Posts Tagged ‘S&P 500’

Stock Prices Are Surging Because Corporations Are Spending More Money On Stock Buybacks Than Anything Else

Posted by M. C. on September 24, 2018

The reason for this is obvious – stock buybacks are a really easy way for corporations to manipulate stock prices.

For instance, this week we learned that the third largest bank in the entire country is going to lay off thousands of workers…Why would they do that if the economy was in good shape?

Because that is what happens when when one of the most crooked banks on the planet keeps getting caught.

http://www.shtfplan.com/headline-news/stock-prices-are-surging-because-corporations-are-spending-more-money-on-stock-buybacks-than-anything-else_09212018

Michael Snyder

The primary reason why stock prices have been soaring in recent months is because corporations have been buying back their own stock at an unprecedented pace. In fact, the pace of stock buybacks is nearly double what it was at this time last year. According to Goldman Sachs, S&P 500 companies spent 384 billion dollars buying back stock during the first half of 2018. That is an absolutely astounding number. And in many cases, corporations are going deep into debt in order to do this. Of course this is going to push up stock prices, but corporate America will not be able to inflate this bubble indefinitely. At some point a credit crunch will come, and the pace of stock buybacks will fall precipitously.

The reason for this is obvious – stock buybacks are a really easy way for corporations to manipulate stock prices. Read the rest of this entry »

Posted in Uncategorized | Tagged: , , , | Leave a Comment »