Buybacks skew markets and they're not done.
https://www.zerohedge.com/news/2018...ears-companies-have-spent-more-buybacks-capex
https://www.zerohedge.com/news/2018...ears-companies-have-spent-more-buybacks-capex
The SPX has hit a cyclical top
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Nobody cares.
They're buying back shares at something like a 22 multiple. Nothing like buying your shares at the ATH and then share offerings once we've dropped 20%.
History will show that share bbacks at 2900-3000 was a huge mistake.
JNJ at a 25 multiple. MSFT at 29. AAPL at 20 into a softening phone market. HOME DEPOT... 24x.
KO at 34x. I would short KO and HD outright. I'll short in vol on the remaining names. KO 46 last. HD 210.
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Honestly, buy stocks, this market is only going up and any sell off will result in Trump caving and instituting policies to push things up or the fed intervening. Aside from a quick 2-3% sell off risk there seems to be nothing that can scare the US market. I think it is important to consider we have both politicians and central bankers who are using the stock market as a gauge of success.
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The Fed is just trying to keep things "humming" ........... as long as they possibly can.
And one of the reasons they can is because of China and other low wage cost producing countries.
Because if not for benign inflation (which we all know it not really as benign as they say) interest rates would be as low as they are and assets would be as high as they are.
If this Tariff Tantrum goes on much longer we might begin to see signs of .... pop pop pop. Top top top.
And one of the reasons they can is because of China and other low wage cost producing countries.
Because if not for benign inflation (which we all know it not really as benign as they say) interest rates would be as low as they are and assets would be as high as they are.
If this Tariff Tantrum goes on much longer we might begin to see signs of .... pop pop pop. Top top top.
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