The Next Big Market Risk: Here Comes A Sharp Slowdown In Stock Buybacks

in markets •  6 years ago 

Many speculated what made the markets move so much during this bull run.

One area many point to is the fact that corporations engaged in a long term stock buyback campaign. With interest rates at record lows, companies were able to preserve their cash position by getting money at a very low cost and buying back shares of stock. This was strong into Q2.

Things could be changing. As off shore money slows, so are stock buybacks. This could be a temporary meaure as the black out period was just lifted. However, Q3 was substanitally below Q2.

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  ·  6 years ago Reveal Comment

Great post!
Thanks for tasting the eden!

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here are the basics people should know about stock markets before even discussing stock buybacks or shortening of the stocks.