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Saturday, July 05, 2014

Who Is Buying American Stocks?

Is it hedge funds? Nope. They are selling.

How about retirement funds? Not this time. They are selling.

How about insurance forms? Nope. Sellers.

Insiders! They know a good thing when they see it! They do, indeed. They are net sellers.

Then it must be foreigners. Sorry. They are selling.

Then who? Corporations, mostly. They are using business profits to buy back shares.

Individuals also buy, but not as much as corporations.

We have not seen this much buying back of corporate shares in years. Specifically, not since since 2007. That was the #1 year for corporate buy-backs.

You may recall what happened in 2008.

But why do they do this? What value does this add to plant capacity? To marketing? To innovation? None.


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