No, Trump’s Tax Windfall Won’t All Be Blown on S&P 500 Buybacks
- Analysts have boosted their capex forecasts to a two-year high
- High capex stocks have beat those focusing on buybacks in 2017
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One drama ends and another begins. Now that companies have all that money coming from Donald Trump’s tax overhaul, what are they going to do with it?
It’s potentially a divisive issue. With corporate rates falling to 21 percent from 35 percent, opponents predict executives will use the windfall to shower money on shareholders through buybacks. Trump’s vision of freed up cash coursing through the economy as new investment will prove a costly delusion, they say.