Taps Coogan – January 8th, 2024
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After a soft start to 2023, corporate buybacks came back with vengeance in the second half of the year to hit by far the highest levels on record, as the following chart from Bank of America via Lance Roberts highlights:
#Buybacks are continuing to run at abnormally high levels and continue to account for a large chunk of net equity purchases. Can the pace be continued?@thedailyshot pic.twitter.com/M0iRGGahpY
— Lance Roberts (@LanceRoberts) January 8, 2024
Buybacks have been trending to new records in no small part because corporate earnings have exploded higher since Covid and remain exceptionally strong to this day. Whether that can continue in the short term is anyone’s guess, but whereas buybacks have not always tracked rising profitability in the past, they certainly are this time.
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