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Q1 2006

Stock buybacks up fivefold

Corporate buyback executives in a feeding frenzy

Net repurchases of equity by nonfinancial domestic corporations soared to an annual rate of $586.8 billion in Q1 2006 (a new record), pushing stock prices slightly higher. Domestic investors, through mutual funds, and foreign investors helped push prices upwards by buying equities.

This frenzied buying was five times the buyback rate in 2000, the year the Great Bubble collapsed!

Featured articles on inside pages

Stock buybacks

The Stock Buyback Era evaluated

The buyback era began when the SEC allowed issuers to manipulate prices to give value to executive options. Stock buybacks since 1982, in 2008 dollars, total $5.77 trillion. More ...

Securities Analysis

Are investors being misled?

Mutual funds are sold primarily on the basis of 'performance' measured by historical 'total return'.The famous Morningstar 'star' rating system is based on 'total return', in this case 'risk-adjusted total return' relative to funds of the same asset category.
More ...

US Politics

Why Congress won't kill ACORN

Closely connected with President Obama, the ACORN group of "community organizers" has drawn censure from the Democrat-controlled Congress as a result of investigative reporting by James O'Keefe and Hannah Giles. More ...

US equities

Sarbanes-Oxley and the shortage of equities

The Sarbanes-Oxley Act of 2002, by discouraging companies to go public, will exacerbate the shortage of equities, with a negative effect on the US stock market, although this was not the intent of its authors. Poorly drafted, ill-conceived, and unfair this law does little to protect investors.
More ...

US Bonds

Bond demand exceeds supply for a decade

Over the decade, 1995-2004, the demand for US bonds of all types has surpassed new bond issues in eight of the last ten years. This is the reason that bond prices have held firm, even in 2003, when net new issues reached almost $1.8 trillion. More ...

World Economy

What Is ‘International Liquidity’?

It used to be that the term 'international liquidity' meant the relative amount of resources available to a nation's monetary authorities that could be used to settle a balance of payments deficit. In the days of the gold standard, this would mean access to gold that could be used to redeem a nation's currency held by foreigners. More ...

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Capital Flow Watch has hundreds of articles on economics and investments.

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Stock Quotes

DJIA10340.69  chart -1.03%
NASDAQ2208.89  chart -1.11%
S&P 5001091.84  chart -1.15%

Ftse 1005407.82  chart -0.58%
Dax6117.89  chart -0.60%
Cac 403643.81  chart -1.11%

Nikkei 2259226.00  chart +0.00%
Hang Seng Index21401.79  chart +0.22%
Straits Times Ind3036.09  chart +0.05%

Eur To Usd1.27  chart +0.05%
Usd To Jpy83.78  chart +0.05%
Gbp To Usd1.54  chart +0.05%

2010-09-07 16:04