Even In A ‘Mild-Recession Scenario’, Buybacks Will Provide Plunge Protection For The S&P

Even In A ‘Mild-Recession Scenario’, Buybacks Will Provide Plunge Protection For The S&P

"The main goal of tax reform is to boost job creation and capital expenditure/research & development spending, potentially creating a positive ripple effect on US economic growth", SocGen's Sophie Huynh innocently writes, in a sweeping equity strategy piece dedicated to buybacks. It's a nice thought - that cutting corporate taxes will incentivize benevolent management teams to spend the windfall raising wages, hiring people and investing in productive capacity. Of course, it doesn't usually
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One thought on “Even In A ‘Mild-Recession Scenario’, Buybacks Will Provide Plunge Protection For The S&P

  1. What happened in 2004 – 05 to go from the relatively low volume of buybacks previously, to volume we have seen over the past 15 years? Projected 2020 buybacks are only slightly higher than the most recent 15 year average, so the plunge protection team may not have as much firepower as thought.

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