The buybacks of stock by a few companies, or even by many, are not relevant to the dividend rates on the indices as listed each week in Barrons and elswhere. Those rates are below any previous level in the U.S. stock market and are recognized (by Malkiel, Fosback, and others) as a signal of a terribly overvalued market.
It is very hard to understand why anyone should wish to take legal action against companies for such buybacks. The companies that do that are making a capital distribution--and then, in the case of IBM, turning around and borrowing money in the credit market. If they needed the money for corporate purposes, why not just keep it? The only reason I could see was a matter of corporate pride--propping up the stock price during the October decline.
But back to the Asian markets. I see that I have dilly-dallied around without buying GRR, Asian Tiger Fund, and the thing has about doubled since I first noticed it about a month ago. Alas! As usual, should have listened to Burton Malkiel. |
