The dichotomy between large- and small-caps continues – the former at 14-month high and the latter stuck in an 18-month range. That said, the S&P 500 has reached a potentially crucial resistance. Buybacks have been providing a nice tailwind. Margin … Continued
A new high was established in S&P 500 buybacks in 1Q. Unlike most of the time in the past, shares were bought at lower prices as the S&P 500 sold off during the quarter. In the four quarters to March, … Continued
Record buybacks are acting as a big tailwind, offsetting headwinds coming from foreigners and margin debt. Investor sentiment is suppressed enough it can act as a tailwind. S&P 500 buybacks set a new record in 4Q21. The companies spent $270.1 … Continued
The S&P 500 on Monday broke out of an eight-week congestion, and can rally further if technicals had their way. Buybacks and margin debt are front and center. In the past three years in particular, their tailwinds have been bigger, … Continued
As S&P 500 earnings staged massive recovery from post-pandemic lows, buybacks are back in fashion. Thus far in 4Q, the index is already up north of nine percent, pricing in a lot of seasonality optimism. As things stand, the index … Continued
Major US equity indices are diverging. The S&P 500 is itching to once again break out, even as the Nasdaq 100 acts tentative. Tech has suffered technical damage, and without the sector’s participation, it is hard to imagine the S&P … Continued
The S&P 500 closed 2020 with a new high. Momentum was very strong in November and December. In the past, more gains followed in the following year. For that, several things have to fall into place, including how flows, margin … Continued
Company buybacks are having quite a bit of a dry spell. As corporate boards act thrifty this year, it has not had much impact on stocks. The buyback shortfall is being offset by bulled-up foreigners and investor willingness to take … Continued
On a 12-month basis, foreigners’ purchases of US equities dropped slightly in July, with June the highest since April 2010. If this represents a turn in their sentiment, this will have come at a time when buybacks are no longer … Continued
S&P 500 buybacks declined substantially in the second quarter. The trend is likely to persist. Historically, the S&P 500 and buybacks move in tandem. The two have diverged big time in the current quarter. As the hitherto tailwind turns into … Continued