KTFA:
BACKDOC: THUNDER, THIS IS HOW THEY WILL EVENTUALLY GET THE STOCK PRICES TO RECOVER SOME AFTER THE GREAT REPRICING. (see article below)
THERE WILL BE SIGNIFICANT BUSINESS CONTRACTION AND MASSIVE LAYOFFS WHICH HAVE ALREADY BEGUN.
WHEN COMPANIES BUY BACK THEIR STOCK IT REDUCES THEIR DEBT AND ALLOWS FOR A HIGHER STOCK PRICE. DOC IMO
Mountainman: Don't HOLD Your BREATH here Boys.......This Strategy of buying Back Ones Stocks to Keep Confidence and Spare CORPORATE Losses in the Future has Not worked So well.......
Waiting on this MARKET to BOUNCE Back is going to be A While, for We Haven't Even TRANSITIONED Over to the New Asset Valued REALITY Yet.......UPS and DOWNS are the New MANTRA for Now.....IMO
Blessings,Mountainman (8)=New Beginnings.......for A STEEP CLIMB......
....
BACKDOC: THUNDER, THIS IS HOW THEY WILL EVENTUALLY GET THE STOCK PRICES TO RECOVER SOME AFTER THE GREAT REPRICING. (see article below)
THERE WILL BE SIGNIFICANT BUSINESS CONTRACTION AND MASSIVE LAYOFFS WHICH HAVE ALREADY BEGUN.
WHEN COMPANIES BUY BACK THEIR STOCK IT REDUCES THEIR DEBT AND ALLOWS FOR A HIGHER STOCK PRICE. DOC IMO
Mountainman: Don't HOLD Your BREATH here Boys.......This Strategy of buying Back Ones Stocks to Keep Confidence and Spare CORPORATE Losses in the Future has Not worked So well.......
Waiting on this MARKET to BOUNCE Back is going to be A While, for We Haven't Even TRANSITIONED Over to the New Asset Valued REALITY Yet.......UPS and DOWNS are the New MANTRA for Now.....IMO
Blessings,Mountainman (8)=New Beginnings.......for A STEEP CLIMB......
....
Thunderhawk: Backdoc Alert
Companies are planning to spend $600 billion on this losing strategy
Companies are planning to devote billions to buying back their own stock this year, even though the strategy seems to be losing its bite.
Statements accompanying first-quarter earnings indicate corporations are preparing to buy a total of $600 billion in their own shares, according to Goldman Sachs calculations.
That comes after a year in which S&P 500 buybacks amounted to $572.2 billion, which itself was a 3,3 percent increase from 2014 and part of a trend that has seen repurchases amount to more than $2.7 trillion since 2010, data from S&P Dow Jones Indices show.
Buybacks slowed in the first part of the year, with TrimTabs reporting a 35 percent decline over 2015. However, that's not likely to last as companies struggle to find the best way to spend cash. S&P 500 companies have nearly $1.5 trillion in cash on their balance sheets.
"The main thing that determines that is whether they see their markets pop or not," said Jim Paulsen, chief market strategist at Wells Capital Management. "One of the things we really haven't had in this recovery is getting all the economic boats moving north at the same time."
With the lack of sustained economic growth, companies have turned to buybacks and dividends to pick up the slack. However, the effectiveness of returning cash directly to shareholders doesn't have the same pop it once had.
Where buybacks had helped fuel the S&P 500's meteoric rise and the second longest bull market in history, the market has been volatile but flat over the past year or so. Moreover, companies that have been the biggest movers in buybacks have underperformed significantly.
The PowerShares BuyBack Achievers Portfolio exchange-traded fund tracks companies that have bought back at least 5 percent of their shares over the past 12 months.
The ETF is down about 0.7 percent in 2016 and off 8.4 percent over the past year. The fund's biggest holdings include McDonald's, Boeing, Qualcomm, Lowes and Mondelez. A big name missing from the top holdings is Apple, which has buyback plans totaling $175 billion for a stock that is down 13.2 percent year to date and 27.5 percent over the past year.
Yet the buyback and dividend trend continues as companies remain reluctant to hire and invest in equipment and as the deal climate cools after a blistering 2015. Mergers and acquisitions activity plunged 25 percent in the first quarter, with much of the steam taken out by the collapse of multiple big-ticket deals, the most recent being the $6 billion Staples-Office Depot marriage.
"If we do get a synchronized bounce in growth, I think you'll start to see these buybacks reduced as companies start to see other uses for their cash," Paulsen said.
Indeed, the inability of stocks to break out has made buybacks a value play as much as anything else as companies find it hard to buy growth. Should the market jump higher, that could serve as an incentive to invest elsewhere.
"You've got to see a market that makes sense to expand operations in," Paulsen said. "If you think this is a pause [in the stock market] it's hard to beat that return. There is no capital investment that's going to give you that this year."
http://ift.tt/1WuSmgq
************
Mountainman: NOTE.....The ONLY "Income Inequality" is Those Who Purposely CHOKE OUT the Life of Average Americans to Earn A Decent Living.....and The MAIN PROBLEM w/ this Scenario Comes Back to EXTREME TAXATION and OVER REGULATION w/Rules so EGREGIOUS It PULLS the MONEY Out of SOCIETY before It Ever Gets STARTED.....this Narrative is Grossly Exaggerated and as One is Affected it Rolls Down Hill to the Next Group as Well.....IMO
Blessings,Mountainman (8)=New Beginnings......for A True Chance for{ALL} Classes
Thunderhawk: US Income Gap Widening, Middle Class Vanishing, Economic Growth Threatened
As wealthy Americans see their income surge, middle and lower class household incomes are seeing a drastic decline.
A new study by the Pew Research Center found that middle and lower class households brought in significantly less income in 2014 than they did in 1999, and observes that the middle class is being pushed out of 90% of the urban areas across the nation.
Researchers determined that, across the country, the share of adults living in middle-income households fell in 203 of the 229 US metropolitan statistical areas.
“With relatively fewer Americans in the middle-income tier, the economic tiers above and below have grown in significance over time,” the report stated. “The share of adults in upper-income households increased in 172 of the 229 metropolitan areas, even as the share of adults in lower-income households rose in 160 metropolitan areas from 2000 to 2014.”
Growth was experienced in 108 of the areas, in both the lower and upper income tiers, while the middle class in those areas declined.
“The current and future status of the American middle class continues to be a central issue in the 2016 presidential campaign. Moreover, new economic research suggests that a struggling middle class could be holding back the potential for future economic growth. The national trend is clear—the middle class is losing ground as a share of the population, and its share of aggregate US household income is also declining,” the report reads.
With fewer people in the middle tier, the gap between rich and poor is widening and, for the first time in 40 years, the middle class is no longer the majority in America.
"You can't say this is a very positive change," Rakesh Kochhar, associate director of the Pew Research Center, told the Los Angeles Times. "[T]his movement reflects more inequality in income and can be a hindrance to economic growth."
http://ift.tt/27nh31z
Companies are planning to spend $600 billion on this losing strategy
Companies are planning to devote billions to buying back their own stock this year, even though the strategy seems to be losing its bite.
Statements accompanying first-quarter earnings indicate corporations are preparing to buy a total of $600 billion in their own shares, according to Goldman Sachs calculations.
That comes after a year in which S&P 500 buybacks amounted to $572.2 billion, which itself was a 3,3 percent increase from 2014 and part of a trend that has seen repurchases amount to more than $2.7 trillion since 2010, data from S&P Dow Jones Indices show.
Buybacks slowed in the first part of the year, with TrimTabs reporting a 35 percent decline over 2015. However, that's not likely to last as companies struggle to find the best way to spend cash. S&P 500 companies have nearly $1.5 trillion in cash on their balance sheets.
"The main thing that determines that is whether they see their markets pop or not," said Jim Paulsen, chief market strategist at Wells Capital Management. "One of the things we really haven't had in this recovery is getting all the economic boats moving north at the same time."
With the lack of sustained economic growth, companies have turned to buybacks and dividends to pick up the slack. However, the effectiveness of returning cash directly to shareholders doesn't have the same pop it once had.
Where buybacks had helped fuel the S&P 500's meteoric rise and the second longest bull market in history, the market has been volatile but flat over the past year or so. Moreover, companies that have been the biggest movers in buybacks have underperformed significantly.
The PowerShares BuyBack Achievers Portfolio exchange-traded fund tracks companies that have bought back at least 5 percent of their shares over the past 12 months.
The ETF is down about 0.7 percent in 2016 and off 8.4 percent over the past year. The fund's biggest holdings include McDonald's, Boeing, Qualcomm, Lowes and Mondelez. A big name missing from the top holdings is Apple, which has buyback plans totaling $175 billion for a stock that is down 13.2 percent year to date and 27.5 percent over the past year.
Yet the buyback and dividend trend continues as companies remain reluctant to hire and invest in equipment and as the deal climate cools after a blistering 2015. Mergers and acquisitions activity plunged 25 percent in the first quarter, with much of the steam taken out by the collapse of multiple big-ticket deals, the most recent being the $6 billion Staples-Office Depot marriage.
"If we do get a synchronized bounce in growth, I think you'll start to see these buybacks reduced as companies start to see other uses for their cash," Paulsen said.
Indeed, the inability of stocks to break out has made buybacks a value play as much as anything else as companies find it hard to buy growth. Should the market jump higher, that could serve as an incentive to invest elsewhere.
"You've got to see a market that makes sense to expand operations in," Paulsen said. "If you think this is a pause [in the stock market] it's hard to beat that return. There is no capital investment that's going to give you that this year."
http://ift.tt/1WuSmgq
************
Mountainman: NOTE.....The ONLY "Income Inequality" is Those Who Purposely CHOKE OUT the Life of Average Americans to Earn A Decent Living.....and The MAIN PROBLEM w/ this Scenario Comes Back to EXTREME TAXATION and OVER REGULATION w/Rules so EGREGIOUS It PULLS the MONEY Out of SOCIETY before It Ever Gets STARTED.....this Narrative is Grossly Exaggerated and as One is Affected it Rolls Down Hill to the Next Group as Well.....IMO
Blessings,Mountainman (8)=New Beginnings......for A True Chance for{ALL} Classes
Thunderhawk: US Income Gap Widening, Middle Class Vanishing, Economic Growth Threatened
As wealthy Americans see their income surge, middle and lower class household incomes are seeing a drastic decline.
A new study by the Pew Research Center found that middle and lower class households brought in significantly less income in 2014 than they did in 1999, and observes that the middle class is being pushed out of 90% of the urban areas across the nation.
Researchers determined that, across the country, the share of adults living in middle-income households fell in 203 of the 229 US metropolitan statistical areas.
“With relatively fewer Americans in the middle-income tier, the economic tiers above and below have grown in significance over time,” the report stated. “The share of adults in upper-income households increased in 172 of the 229 metropolitan areas, even as the share of adults in lower-income households rose in 160 metropolitan areas from 2000 to 2014.”
Growth was experienced in 108 of the areas, in both the lower and upper income tiers, while the middle class in those areas declined.
“The current and future status of the American middle class continues to be a central issue in the 2016 presidential campaign. Moreover, new economic research suggests that a struggling middle class could be holding back the potential for future economic growth. The national trend is clear—the middle class is losing ground as a share of the population, and its share of aggregate US household income is also declining,” the report reads.
With fewer people in the middle tier, the gap between rich and poor is widening and, for the first time in 40 years, the middle class is no longer the majority in America.
"You can't say this is a very positive change," Rakesh Kochhar, associate director of the Pew Research Center, told the Los Angeles Times. "[T]his movement reflects more inequality in income and can be a hindrance to economic growth."
http://ift.tt/27nh31z
Mountainman: LOOK for More VOLATILITY In the MARKETS as Next Week
JACK LEW and Other G7 Countries meet in Japan to Discuss their Strategies in How and When they Adjust their Currencies.....The Implication is it CENTERS Around DEVALUATION Strategies.....
Blessings,Mountainman (8)=New Beginnings.....for.....STRATEGY
Thunderhawk: Backdoc Alert
This is what's lurking under the quiet market
Even though markets are trading in a narrow range, traders are fixated on a potentially important level in the S&P 500.
"The major indices — SPX, OEX, INDU, RTY — are testing their 50-day moving averages, which sometimes act as support, so today's action will be telling," BTIG Chief Technical Strategist Katie Stockton said in a morning note Friday.
U.S. stocks traded narrowly mixed Friday morning, wrapping up a volatile week that saw the Dow's worst day since February and its best day since March. While disappointing retailer earnings renewed concerns about U.S. economic growth, traders said the existence of many crosscurrents in the market puts greater focus on technical levels.
The S&P 500 briefly dipped below its 50-day moving average in intraday trade Thursday but did not close below that level. The index was hovering just above its 50-day of 2,055.01 in morning trade Friday.
Lance Roberts, chief investment strategist at Clarity Financial, said if the S&P 500 falls below its 50-day moving average it will test the 200-day moving average around 2,012 and, if it falls below that, the index will test the lows of last year. Read more at:
http://ift.tt/24Qdb76
JACK LEW and Other G7 Countries meet in Japan to Discuss their Strategies in How and When they Adjust their Currencies.....The Implication is it CENTERS Around DEVALUATION Strategies.....
Blessings,Mountainman (8)=New Beginnings.....for.....STRATEGY
Thunderhawk: Backdoc Alert
This is what's lurking under the quiet market
Even though markets are trading in a narrow range, traders are fixated on a potentially important level in the S&P 500.
"The major indices — SPX, OEX, INDU, RTY — are testing their 50-day moving averages, which sometimes act as support, so today's action will be telling," BTIG Chief Technical Strategist Katie Stockton said in a morning note Friday.
U.S. stocks traded narrowly mixed Friday morning, wrapping up a volatile week that saw the Dow's worst day since February and its best day since March. While disappointing retailer earnings renewed concerns about U.S. economic growth, traders said the existence of many crosscurrents in the market puts greater focus on technical levels.
The S&P 500 briefly dipped below its 50-day moving average in intraday trade Thursday but did not close below that level. The index was hovering just above its 50-day of 2,055.01 in morning trade Friday.
Lance Roberts, chief investment strategist at Clarity Financial, said if the S&P 500 falls below its 50-day moving average it will test the 200-day moving average around 2,012 and, if it falls below that, the index will test the lows of last year. Read more at:
http://ift.tt/24Qdb76
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