The record-high $1 trillion of stock buybacks isn't as wild as it seems 🧐
Also, what does the IRA mean for buybacks and earnings?
So, it’s easy to jump to the conclusion that corporations are increasingly shifting their capital spending priorities1 toward buying back stock, which is generally considered less productive for the economy than spending toward capital expenditures and other growth projects.
This is one of the reasons buybacks are a hot-button issue in politics.
I’m not going to get into the pros and cons of buybacks here. But I do think it’s worth putting the scale of buybacks in the context of the greater stock market and its impact on earnings.
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