The Daily Market Catch
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US Markit PMI composite signals jobs growth of just 50,000 in October. @Danske_Research
Both POTUS candidates Sanders and Warren have presented economic plans to limit or ban stock buybacks. They want to end Income Inequality that has been an unintended consequence of financial engineering that drives stock prices higher – especially in combination with Fed’s easy money policies past decade that incentivized a dangerous debt jubilee. The narrative against buybacks is picking up speed with major pushback directed at companies that do not spend on investment/capex and wage growth but instead sacrifice these for executive compensation/shareholder value. Examples include:
TXN: Texas Instruments up 2.6% in revenue since 2006 but stock is up an amazing 300%.
$AAPL Apple has bought back over 2 Billion or ~30% of shares outstanding at the end of 2012.
$BA: “in last 5 yrs Boeing diverted 92% of operating cash flow to dividends & share buybacks to benefit investors. Since 1998, share buybacks consumed $70 billion… ”
Top Reads / Videos
Private equity managers won the financial crisis. But will they cause the next one?
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To Great Fishing!
CIO LaDuc Capital LLC
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