FYI: Whatever else you may think about stock buybacks, it’s quite likely that, but for them, the U.S. stock market today would be markedly lower.
That is the implication of a study published last year in the Financial Analysts Journal, “Net Buybacks and the Seven Dwarfs,” by three researchers from the Abu Dhabi Investment Authority. They found that net buybacks—the number of shares that companies repurchased across the entire stock market, less the number of new shares issued—explain the bulk of the intermediate- and longer-term differences in stock-market returns around the world.
Regards,
Ted
https://www.wsj.com/articles/a-surprising-connection-between-the-bull-market-and-stock-buybacks-11554689160
