The Markets
Comments Off on The MarketsWhy have markets been rising?
Well this is always a conundrum, and explanations from the great and the good abound everywhere. However, there is one aspect that is often ignored, as most seem to follow what the institutions and private investors do as they chase their fashion fads into various asset classes of the day. They often overlooked issue is what the companies actually do themselves. It seems that in the US there has been a growing propensity just for companies to buy their own shares back. With the cost of debt being pretty cheap there is a logic for companies to buy some of their own stock back, reducing the number of shares in issue and thus increase earnings per share for investors – oh yes and improve the value of the executive stock options as well!