Companies have been buying back massive amounts of stock this year

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As buybacks hit records last year (about $800 billion) a predictable political backlash developed: corporations were spending too much of their free cash flow buying back stock and should spend more investing in their businesses.

Buybacks so far in 2019 are strong but just below 2018's record, according to a new report from J.P. Morgan.

Low borrowing costs make it easy for companies to issue debt, some of which is used to fund buybacks.After a record 2018, buybacks so far in 2019 are strong but just below 2018's record, according to a new report from J.P. Morgan. Maybe, but J.P. Morgan concludes that buybacks do accomplish their main goal. They improve stock prices.

That's because overall buybacks have been reducing the amount of shares outstanding. Net buybacks — the actual amount bought back minus the value of new options that are passed on to employees — is about $400 billion, half the gross buyback figure of $800 billion, but still a big chunk of cash.

 

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But they were supposed to give raises to their workers and bring manufacturing jobs back to America. What happened?

Ponzi scheming corporate America

Because there’s no other way to boost their stock price since there’s a correction/ recession bouta hit us

I thought there was going to be reinvestment.

Ban buyback. Use the money for capex

This has been going on for 10 years now, not really news 🤔

$TTCM

JohnChen BryanJPalma it is time to do the same...... show you believe in your company's future.....

Economy is doing really good. At least for some...

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