“Buybacks are the main reason for the extraordinary rise in the S&P 500 since 2009. According to a blog by Evergreen Gavekal, a registered investment advisor (RIA), while there is nothing inherently wrong with share repurchases (reducing a company’s outstanding shares makes each dollar of earnings more valuable on a per share basis, which is good for investors), the problem is that companies are borrowing at an alarming rate in order to repurchase their own shares. ” – https://aheadoftheherd.com/Newsletter/2020/A-Minsky-Moment-is-coming-for-gold.htm
Do 1997, 2008 have inevitable cyclical relationship, will 2020 bring on more of the same?
Will the Repo market freeze and take everything out again? Stay tuned as the year unravels. Will the Corona Virus be used as the trigger excuse?