Bye-Bye Buybacks

[william the wie]

Free money and buy backs were the only things keeping capital markets open 2009-10. The free money from QE toned way down on the way to reelection in 2012 and is effectively a non-factor now. Buybacks peaked in 1Q of the current year.

With corporate income taxes coming down there is no reason to use buybacks to get untaxed money to shareholders. Just raising the dividend on a regular basis works better until it creates a new version of the nifty-fifty of the late 60s/early 70s.

While buying issues at a discount to book value is my favorite defensive move one big problem is emerging in that part of the market everybody with a lick of sense is jumping into the pool and driving up prices 25-30% just since the election. This is a badness thing.

I have three other fall back positions but I would like to find out the more popular positions so I can avoid them. Financial happiness are returns in the nosebleed range and risks deep in an undisclosed location that can survive a direct hit with a nuke. But there is limited seating in such shelters.

Anyone with a "surefire" moneymaker that they want to brag about?
@ Zander, Toro

 

[Cellblock2429]

]Anyone with a "surefire" moneymaker that they want to brag about?[/QUOTE]

Yes, They are called Covered Calls. Works every time.

 

[william the wie]

]Anyone with a "surefire" moneymaker that they want to brag about?

Yes, They are called Covered Calls. Works every time.[/QUOTE]
If the underlying doesn't go under yes.