Stocks and Buyback Correlation = 0.61

You should read the whole thing, but I wanted to share three sentence from Mark Hulbert’s latest.

New stock buybacks fell to $23.2 billion in June, the lowest level in a year and a half, according to fund tracker TrimTabs Investment Research. In May, the total was just $24.8 billion, and the monthly average in 2013 was $56 billion.

(…)

According to Santschi, the correlation coefficient between monthly buyback volume and the stock market’s level, for the period from 2006 until this spring, was 0.61.

(…)

Over the past five years, for example, per-share sales growth for S&P 500 companies has been an annualized 2.4%, lagging far behind the 20% annualized earnings per share growth rate.

Posted by on July 9th, 2014 at 12:03 pm


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