The stock market would be much lower if it weren't for companies buying back their own shares

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Buybacks have gotten a bad rap from both Republicans and Democrats. But stocks would be trading at a massive discount without them.

Data compiled by Ned Davis Research shows the S&P 500 would be 19% lower between 2011 and the first quarter of 2019 without buybacks.

"Without focusing too much on numbers, we can say that the S&P 500 index would probably be lower today if not for buybacks versus other uses of cash," says Ed Clissold, chief U.S. strategist at Ned Davis Research. Data compiled by Ned Davis Research shows the S&P 500 would be 19% lower without buybacks. The firm looked at the S&P 500's performance between the first quarter of 2011 and the first three months of 2019. Then they subtracted the amount of net monthly repurchases to arrive to that conclusion. The broad market is up more than 125% in that time while net buybacks have totaled about $3.5 trillion.

 

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Always true

It’s a Casino for the rich now😂

Why would these companies be buying back their own stock if they didn’t think it would be going up?

Are we at dangerous levels...

That's part of the President's plan, isn't it?

Will the bottom drop out?

😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂anything to try and hurt Trump.

The Republicans gave the Rich & Rich Companies 1.5 TRILLION DOLLARS of our tax money & rather then hire more employees they bought back their company shares artificially forcing the share price up. A day of Reckoning is coming sponsored by Republicans. Americans debt to pay off.

Well its on this list to be made illegal !

It dilutes the stock. A very bad idea, the only reason this is practised is due to the fact senior executives get stock options.

😂😂😂😂

could that be that the companies really aren't producing and aren't worth that much?

And it would also be much lower if top and bottom line earnings weren’t at record levels. So your point is?

How about the corporate tax cut?

That’s what companies do when they have tons of cash on hand from revenue created by skyrocketing productivity from the 5.4 million new jobs that Trump has created in the best economy in 50 years.

Obviously. Last ditch effort to prop up the house of cards.

And it would be even lower if the Fed hadn’t printed money for 8 years under Obama. What is your point?

So, it's not because the economy is doing so well as Trump claims!!

Seriously! CNBC another incomplete tilted headline. Who is the liberal on your staff that does this?

oh with their fake news propaganda. This has ZERO relevance.

Buy bitcoin

Winter is coming....

based on the story, headline should have read; 'The stock market MIGHT be SOMEWHAT lower if it weren't for companies buying back their own shares'. the FED not buy backs are in control of this market.

What else? While the tax cut made it that way right? And the really stable genius had that in mine all along..taking the credits.. using it for talking points.. I feel that stable genius.. is just a rigged up guy.just to make himself look good,my feelings..

So capitalism only works if corporations buy back their stock?

JohnnyAi The markets are buying back their stocks with the tax breaks that was given to them. Pure greed

The last thing you can call the stock market is a free market , the worst manipulated stock market in modern era, however, the 1% can only control buy backs and US manipulation ... what happens when china lets the 7 yuan go! And maybe stop buying treasuries ? BOOM!!

Stupid logic! The companies were going to return the money to investors in one way or another. The other way would had been increase dividend and that money most likely would have ended up in the stock market.

Fight with China on trade war, the stock market will be much much lower, good job!

Artificial propups to a market in desperate need of correction.

Again total bullshit to make the economy look sound. It’s not.

Really? 🙈🙉🙊

It would also be much lower if a Democrat was in the White House. Keep that in mind when you vote.

The economy would be much better if those dollars we being reinvested into growing their business and rewarding workers with better compensation instead of benefiting the rich who own most of the stock. More wealth for the 10% who own 70% of 🇺🇸wealth. More 💩for their employees‼️

This means that the people who understand the true value of the stock, are buying. So, what does that say about the market's Intel. Like I've said before, short term mind set rein's supreme. Companies see value and they are the ones to Know... business MarketWatch

Gotta buy their own wealth.

You could also opine the market would be much lower if company earnings were lower. If corporate taxes were higher. If sentiment was poor. But alas all these things are not the case so why opine on what could have been?

The Stock Market Crash Is Looming! When It Comes Fund Managers Will Flee To A Combination Of Gold + Bitcoin. Bitcoin yearly returns: 2011: +1473% 2012: +186% 2013: +5507% 2014: -58% 2015: +35% 2016: +125% 2017: +1331% 2018: -73% 2019: +120% (so far)

Have any of you guys ever actually studied finance?

And that’s attributable to low interest rates... the Fed.

Wait for their money finish...

Stock buybacks are a self regulating feature that have proven invaluable to our economy.

So, you’re saying that Corp execs are simply building up their stock price so they can get the millions in exec salaries boosted with more millions, while doing nothing to actually invest in the company futures. Sounds about right!

You mean more effective dividends?

Also if everyone sold all thier stocks it would move lower. Thanks for the insight. Captain Obvious any good travel tips?

They have the freedom to do so. Good for them

FINALLY ! Buy-backs make the Market Artificial. Where, that money spent on innovation would create Value & Jobs. Thanks, let’s spread the word.

Bubleish market. We know what happens with bubbles, right?

False assurance

Which is falsely inflating the economy... the gop and DonTheCon plan

Borsa kumardır....Olmayan para üzerinden oynanan kumar...Borsayı ilk çıkartan ülke hangisi🇹🇷🇹🇷

C

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