The $1 Trillion Buyback Hysteria May Be Overstated. Here's Why
- Buybacks are about 1% of all U.S. equities traded every year
- Repurchases haven’t come at the cost of business investment
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It’s been impossible to miss all the yelling about how stock buybacks are inflating the longest rally in U.S. history.
America’s 500 largest companies are poised to spend almost $1 trillion removing shares from public markets this year, according to Goldman Sachs Group Inc. Apple Inc. recently announced plans to repurchase an extra $75 billion of its stock. And everyone from presidential hopeful Bernie Sanders to Lloyd Blankfein, Goldman’s former chief executive officer, has opined on the impact these purchases have on companies, the market and society.