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Why To Pay Attention to Today's Buyback Boom.

From the Blackrock blog. A timely article considering the discussions here lately about stock buy backs.

http://www.blackrockblog.com/2015/06/01/pay-attention-todays-buyback-boom/

Comments

  • edited June 2015
    "....why today's buyback boom is an economic distortion created by the Federal Reserve's excessively accommodative monetary policy."

    Nahhhhhhhhhhh...lol. If it is, hopefully companies will handle things better than Michael Kors has, losing hundreds of millions recently after buying back quite a bit and then having the stock get obliterated.

    ", others, including my colleague Larry Fink, have argued that some companies today are focusing on maximizing short-term shareholder value at the expense of investing in the future."

    You don't say? I mean, focusing nearly everything on buying back stock rather than putting any thought towards the future is going to end well, right? Right? (crickets.)

    "In my opinion, today’s boom is just one economic distortion created by the Federal Reserve (Fed)’s excessively accommodative monetary policy."


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