How Much Can Buybacks Rise on Tax Cuts? This Estimate Says 70%
- Dollar amount of buybacks among U.S. stocks may rise to $875B
- Level of completed buybacks fell to near 2013 low: Birinyi
Mainstay CEO Says U.S. Tax Reform Will Be Good for Stocks
This article is for subscribers only.
Donald Trump’s Christmas present to U.S. equity investors will be a big one, if history is any guide.
Share repurchases may jump by more than 70 percent on an annualized basis to $875 billion amid a tax overhaul that encourages the repatriation of profits held abroad, according to an analysis by Bloomberg Intelligence. At least, that was the magnitude of growth in completed buybacks in 2004-2005, the last time the U.S. firms were granted a tax repatriation holiday.