Gordon T Long Global Macro Research | Macro-Technical Analysis MATA – TECHNCIAL ANALYSIS PATTERNS YOU CAN ONLY MANIPULATE THE DATA SO LONG! Economic reality is starting to overwhelm the data games that the government statisticians can resort to, which would buy time the Federal Reserve desperately needs to raise rates. This needs to sufficiantly […]
ARE RECORD STOCK BUYBACKS APPROACHING AN “EMPTY TANK”! Warren Buffett is well known for comparing stock prices to GDP to assess whether stocks are becoming over-valued with inherent levels of excess risk. Stock buybacks this year continue to be financed with corporate leverage. However, the question is how much more leverage can corporations take on […]
MARKET AT CRITICAL JUNCTURE & THE BUYBACK BLACKOUT WINDOW MAY BE THE TIPPING POINT! A PUBLIC SOURCED ARTICLE FOR MATASII (SUBSCRIBERS & PUBLIC ACCESS) READERS REFERENCE SOURCE: 03-18-19 – – “Buyback Blackout Period Begins Just As Bears Capitulate” MATASII SYNTHESIS: According to Deutsche, the number of S&P 500 companies in blackouts will ramp up sharply starting in the […]
BOTH DEMOCRATS & REPUBLICANS COMING AFTER TAX REVENUES FROM 2017 BUYBACK TAX CHANGES A PUBLIC SOURCED ARTICLE FOR MATASII (SUBSCRIBERS & PUBLIC ACCESS) READERS REFERENCE SOURCE: 02-13-19 – CNBC – “GOP Sen Marco Rubio takes aim at stock buybacks, an issue under attack by Democrats” SOURCE: 02-12-19 – MarketWatch – “Marco Rubio rolls out his own plan to […]
ON TRACK FOR $1 TRILLION IN STOCK BUYBACKS IN 2018 – CORRELATION INTACT According to TrimTabs, $827 billion in stock buybacks have been announced so far this year. Furthermore, if stock buyback activity continues to rise in the fourth quarter, it is likely that we will reach $1 trillion in stock buybacks in 2018. The […]
THE ECONOMY WILL EVENTUALLY “PAY THE PIPER” FOR HISTORIC LEVELS OF CORPORATE STOCK BUYBACKS — SOURCE: 08-02-18 The week, Ryan Cooper – “Ban Share Buybacks!” — American corporations are simply raking in profits. Some are so bloated and cash-rich they literally can’t figure out what to do with it all. Apple, for instance, is sitting on […]
GOLDMAN PREDICTS $1 TRILLION IN 2018 STOCK REPURCHASES AS YTD TOTALS REACH $754B — SOURCE: 08-05-18 Goldman-Sachs via ZH – “Goldman: You Are Asking The Wrong $1 Trillion Question” — After several months of heated market speculation, to Amazon’s chagrin the question of which stock would be the first to reach $1 trillion in market […]
BUYBACKS ARE STARVING THE ECONOMY OF INVESTMENT CAPITAL & FOSTERING THE UNINTENDED DESTRUCTION OF CAPITALISM KEY MESSAGE: Buybacks are now equivalent to 4 percent of annual economic output, up from zero percent in the 1990s. Companies spent roughly $7 trillion on their own shares from 2004 to 2014, and have spent hundreds of billions of dollars on buybacks in […]
RECORD “REPATRIATION” DRIVEN BUYBACKS EXPECTED TO WEAKEN IN SECOND HALF 2018 –SOURCE: 02-26-18 BoAML via ZH – “BofA Shows The Staggering Amount Of Stock It Bought Back For Clients” — While it is well known that stock buybacks have been among the primary contributors for the solid stock performance in the US in 2018, largely […]
ACCOUNTING MAGIC – “X” MARKS THE SPOT! — SOURCE: 06-21-18 RealInvestmentAdvice.com, Lance Roberts – “Earnings Estimates – The Fade Begins (And ‘X’ Marks The Accounting Magic Spot)” — Accounting Magic Looking back it is interesting to see that much of the rise in “profitability” since the recessionary lows have come from a variety of cost-cutting measures and accounting gimmicks rather […]
