Investor’s Edge: 03/29/2016
$278 to $26
- Market Wrap
- Find Out What Important Areas Are Moving Markets
- Easy Money – Explained
- A Little M&A Talk
Greetings from Hong Kong…on the way to Shanghai today. Will have a complete report on China this coming weekend.
Was up overnight watching and the best way to describe the action is a lot of not much. A lot of sitting, a lot of back and forth, a few things not so well, a few things act well. But a glance at new yearly highs find the same…utilities, reits, food, beverage and stuff like that. Sure…a smattering of other things but just a smattering.
We told you over the weekend that end of quarter is usually bought up or held up. Right now…held up. But this contracted volatility could lead to higher prices once done but there will need to be a lot more improvement as plenty still not working. Contracted volatility usually does not last too long but on occasion it has.
Stock buybacks, which have helped power the 7-year-old bull market, are showing their first signs of retreat in at least three years.
Share repurchases decreased 3.4 percent in the fourth quarter from the previous three-month period and are tracking at a 21-month low in March, according to respective data from S&P Dow Jones Indices and TrimTabs.
If the trend continues, that would mark a major trend shift. Companies have been using reductions in share count as a way to boost earnings profiles, raise stock prices and reward corporate executives. The programs have been seen as a major driver of the market rally, though the extent of the effect has come under scrutiny in recent months.
The most recent trend shows that buybacks have dwindled to $23.5 billion in March, just a month after hitting a 10-month high of $94.6 billion in February, TrimTabs reported in its weekly market summary. S&P 500 companies have committed more than $2.7 trillion to buybacks since the market bottomed back in March 2009.
For all of 2015, share repurchases totaled $572.2 billion, an increase of 3.4 percent from 2014. Full Story Here.