What is your opinion on share buybacks?
I personally don’t think share buybacks themselves are bad. A company is free to do whatever they want with their money. The issue is that people don’t realize what this means. It’s not the fundamentals pushing the markets higher, it’s simply easy monetary policies on a completely unsustainable path.
There are only 2 main reasons why the U.S. stock market had risen. Central banks printed money and directly bought U.S. shares. And number 2, companies bought billions and billions of dollars worth of their own shares, massively pushing the price higher. This is at record levels now. So as volume slows down, liquidity dries up, companies have to come to their own rescue.
Apple plows U.S. tax cuts into record share buybacks | Reuters
Wall Street rises on optimism on NAFTA deal and China trade
Billionaire girds for stock-market crash by investing half his net worth in gold – MarketWatch
Flash – In Venezuela, five years of severance pay now buys a coffee – France 24