Tuesday, September 22, 2015

"I Wish Someone Had Told Me To Pull My Head Out of My Own Ass"

Wall Street's Bernie Madoffs have run out of tricks

Stock buybacks peaked over a year ago...

This just in:
MW: Sept. 21, 2015
Stock buybacks decline -6.9% sequentially. -.4% Year over Year

"S&P 500 companies are spending more on buybacks than they are generating in free cash flow. The buybacks-to-free-cash-flow ratio stood at 108% at the end of the quarter, the first time since October 2009 that the ratio topped 100%, in part due to a 29% decline in free cash flow at the end of the quarter."

Stock buybacks (red). Operating earnings (green) with Stock Buyback ETF:
Earnings and buyback data from: http://us.spindices.com/indices/equity/sp-500