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 as a percentage of the total economy?

Do we now need to think of Buffett's benchmark guidance in terms of the corporations debt since almost all of its record increased leverage has been used to boost record stock prices and additionally shrink total market shares outstanding?

 

With a Recession on the horizon when revenues historically drop precipitously,consider this:

debt-percentage-of-revenue

 



[SITE INDEX -- TIPPING POINTS - US STOCK MARKET VALUATIONS]

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