Remember, the bar is high.
Who is going to buy these goddamn stocks?
No conspiracy theory about Janet Yellen playing futures trader from her living room necessary.
Well it’s time for another update on how corporate America intends to spend the windfall from the GOP tax cuts…
“To wit, there never would have been a double inverse VIX ETF under a regime of honest money and free market financial discipline; nor would you find European junk bond yields trading inside of US treasuries.”
Don’t worry, you can always lean on the price-insensitive corporate bid.
Of course this “fundamentals-based” excuse will be couched almost entirely in terms of the assumed sugar high from myopic fiscal stimulus and deficit-funded tax cuts.
Whatever the case, it looks like Goldman’s buyback desk isn’t enough to stop the bleeding in an acute situation…
Show of hands: who’s surprised?
The “bad” news is, companies will be less inclined to buy back shares with the money they bring home because… well…
That’s ok, maybe we can just send a nice letter to the SNB and/or Norway’s sovereign wealth fund and politely ask them to fill the void.
“Buybacks may boost the market, but they do not obviously benefit those companies doing it.”
“Perhaps over-leveraged US companies have finally reached a limit.”
“Really though, we needn’t think too hard about this.”