>>577640
>>577640
>I noticed the number 800 keeps getting referenced.
>
>I looked for any recent news, Saw this
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>S&P 500 companies expected to buy back $800 billion of their own shares this year
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>Published: Mar 6, 2018 6:59 a.m. ET
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>S&P 500 companies will buy back a record $800 billion of their own shares in 2018, funded by savings on tax, strong earnings and the repatriation of cash held overseas, J.P. Morgan said Friday.
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>That will far exceed the $530 billion in share buybacks that was recorded in 2017, analysts led by Dubravko Lakos-Bujas wrote in a note. Companies have already announced $151 billion of buybacks in the year to date.
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>“There is room for further upside to our buyback estimates if companies increase gross payout ratios to levels similar to late last cycle when companies returned >100% of profits to shareholders (vs. 83% now),” said the note. “Corporates tend to accelerate buyback programs during market selloffs.”
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>https:// www.marketwatch.com/story/sp-500-companies-expected-to-buy-back-800-billion-of-their-own-shares-this-year-2018-03-02#false
Share buy-backs are not good for investors. It is a deceptive way to raise the value of shares without any underlying earnings increase. The people who benefit most from share buy-backs are directors, not your average investor.