Wall Street has been throwing a party so far this week. But one key source of market liquidity appears to be drying up – stock buybacks. TrimTabs Investment Research just reported that corporate stock buybacks have only totaled $261.5 billion so far this year. That’s a hefty 35% plunge from $399.4 billion through late-May 2015. Recent research from Bloomberg drew pretty much the same conclusion, with a slight variation in the numbers.
Bottom line? Stock buybacks are just another one of several “Everything Bubbles” that’s beginning to pop. I’ll go into much more detail on this and other topics during the Money, Metals, & Mining Cruise scheduled for July 10-17, 2016. Be sure to check out the details here, or give my team a call at 800-797-9519.
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Mike, all of your arguments are convincing, but the stock market keeps rising. I don’t mean to be mean, but when are you going to admit that you are wrong and that the stock market is going higher?