SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 421.66-0.1%Jan 13 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TobagoJack who wrote (8884)9/3/2006 11:16:14 AM
From: Rarebird  Read Replies (2) of 219326
 
Corporate Buybacks are similar to motor tuneups for the car; they are primarily stock price maintenance programs.

Corporate America has accumulated lots of Cash over the past year because they've foreseen a nasty recession coming.

It'll likely take one company after another preannouncing an earnings shortfall (like in March/April 2000) before most LTBH (Long Term Buy & Hold) investors realize that the economy is already in a recession. Some traders already sense that the US economy may be in for a rough patch moving forward, but they primarily trade on technicals (and momentum) and mistakenly think the Fed can ultimately bail the US economy out of any trouble or crisis. After all, who wants to pay attention to valuations or fundamentals except bears and short sellers? What primarily matters in America is short term profit.

I know that Bear Markets (and Crashes) begin with the realization that valuations are wrong. Investors/Traders then sell, causing massive portfolio losses and then economic slowdown and layoffs result. Here we are getting the economic slowdown and the beginning of the layoffs (such as Intel) coming first. Welcome to the Modern God of Finance (the Fed) Blessing America.

Once the real estate market breaks (which it has begun to do), it will bring down the American consumer with it and create massive problems for the American Lending Institutions (to say the least), causing the Stock market to tank. Checkmate?

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News