Read on Twitter
@mre2all
1/ I did last yr when cred mkts collapsed/re-opened but to fund survival rather than bbacks.Thru Nov. (ex- $AAPL) new bback anouncements were ~$80b which is basically nothing. Then in Dec/Jan'21 they've exploded. Entirely possible the old dynamic comes/is back in play.
1/ I did last yr when cred mkts collapsed/re-opened but to fund survival rather than bbacks.Thru Nov. (ex- $AAPL) new bback anouncements were ~$80b which is basically nothing. Then in Dec/Jan'21 they've exploded. Entirely possible the old dynamic comes/is back in play.
2/ And here is what's interesting: in this absolutely must-watch video https://twitter.com/zer0estv/status/1359951273060147208 he talks ~ lack of px sensitivity of passive investing. Something I harped on is that bbacks aren't nearly as important for the cos. as they are when the $ is rolled into passive idxs
3/ Anyway, the Flow Funds Z.1 Rel. (Table F.223) issued in Dec. supports the notion that bbacks all but disappeared in '20 and hedge funds and foreign buyers were the gorillas that rallied stks. If the bbacks do come back it will be much harder for stks to collapse.
4/ Remember also that in the bback dynamic, bbacks don't kick in til there's a drop. Buyback desks ARE px sensitive. It's once bbacks r done that levitation starts as proceeds roll into passive idxs. So I think we'll have 2wait and see if bbacks r back until the next air pocket.
