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Physicists last week confirmed the existence of gravity waves, which Einstein theorized roughly a century ago. Meanwhile, Wall Street has been fixated by another powerful, unseen force—corporate stock buybacks. Companies repurchasing their shares helped propel the stock rally higher and, more recently, have provided some much-needed life support to an aging bull market.
U.S. companies announced $831 billion in buyback authorizations in 2015, up 29% from a year earlier, according to Birinyi Associates. Another $131 billion more have been pledged so far in 2016—a record, year to date. There’s some ambiguity about all of this supposed good news, since not all authorized repurchases get executed. And the economic merits of companies buying back shares, rather than investing in business growth, are hotly debated.
Regards,
Ted
https://www.google.com/#q=Beware+Buyback+ETFs+Barron's
