Posted on 01/28/2019 1:29:13 PM PST by C19fan
I have zero faith in this Reuters article which is based on ... what? polling? Come on.
Better to look at economic data, unemployment, GDP, etc
Obama took credit for putting in motion the environment that led to the low unemployment.
-PJ
FReepers such as ... ?
The socialists at Reuters think they deserve the $$$
Surely you’re not advising that tax and regulations cuts are a bad thing?
Well played, Diana!
You beat me to it by exposing this LIEberal gadfly group before I could get my article posted!
Reuters=Fake news
LOL...certainly not. It should have been done a long time ago (or never been started?). Look, my dad was a union pipefitter from the 60's-90's (back when dems were dems) and even HE hated corporate taxes because he understood and taught me properly (with a can of corn at the Kroger one day in the early 1980's) that corporations don't pay taxes. NEVER. They just pass it on to me and you. So, you can say you are taxing them 25% or 35% or 95%...but in reality you are taxing the guy eating the corn.
What should have been done was congress should have put stipulations in on how the $ could have been spent. My trading partners and I knew EXACTLY how they were going to spend that $....so did congress (read my tagline). Now all of their portfolios are getting just a little bit bigger, dem and repuke. They are all on the same team (as we have seen).
Deregulation? A Godsend. THIS is where most of the growth has occurred and why.
If we run into problems it's going to be the global economy dragging us down, most importantly the emerging markets, which are $67 trillion in debt and our banks service most of it. The FED (which is evil and must be stopped and I hope Trump can) is out of bullets with our debt so high and with interest rates still so low. You see what happens to the markets every time they get just a little hawkish. Ideally, they need to be up near 4-4.5% (or let the market decide it) but that can't happen. The fact the markets shake apart every time the money gets a little less cheap should tell you something....in fact...it should SCREAM at you. And it's not just here...it's all over the world QT is occurring. When the printing presses dry up...the economies start to struggle.
When the era of cheap money comes to an end...look out below. It's won't be Trump's fault...it will be the decades of irresponsible monetary policy that went before him...but rest assured...they will make it look like his fault (take it to the bank if you can find one open).
So, it was just mere coincidence that the unemployment is the lowest its been in 50 years? Or is that result of cutting back billions in regulations?
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Funny aint it?
Idiots still believe the bullshit msm that they know lies to them every day in every way.
That’s a real special kind of stupid, isn’t it.
So what about small and midsized businesses that weren’t surveyed?
Yup.
I’m not buying what they are selling here.
There was a massive economic reaction shortly after the tax cuts went into effect.
There’s something fishy about this reporting.
We are seeing evidence that off shore funds are repatriating, at least they appear to be.
Yup. The end consumer is the ultimate payer of all corp taxes. That’s why Trump’s original plan of cutting the corp tax rate to zero got my immediate attention. Too bad the politicians got in the way.
But I’m not a fan of the government regulating how corporations should invest their cash. I don’t know about your personal situation, but I think buybacks generally enhance the long-term stockholders positions.
As I said, personally it doesn't impact me either way. /ES (E-mini S&P 500 Futures) has a tick size of $.25...and a tick value of $12.50. A rise or fall of 50 is of equal value to me since I will either go long or short it. Now, getting up early in the morning when the big moves happen (sometimes at 3-5 am CST) can be cumbersome ;-)
When people say there's just as much money to be made in the stock market when it crashes as when it rises (if you know what you're doing)...they're not joking. I made a lot of money in December...and my brother-in-law was screaming (said: "You must be loving this...." because his Dow stocks were crashing. I told him "L...it doesn't matter to me...I'll make it coming and going."
Supposedly many of the S&P stocks can start buying back next week after they report. If I were trading again I’d sit back and see if earnings season softens the market for a week or three, with an eye to go long calls on the S&P ETFs.
As for the article, it is mostly BS. Companies plan over a much longer time frame. If they weren’t planning capex spending last year then this year’s cut won’t matter. This year they may plan capex spending to grab the deductions while they can.
Oh poor baby
A bunch of Home Depot and Walmart workers received very nice bonuses
You seem to think corporations pay taxes. Your understanding of economics makes me question the validity of your source
I might be a bit more skeptical than you - buybacks may tend to benefit the people who own stock and stock options, which include employees but very much the people at the top who get paid bonus in options based on, in part, the performance of the stock. That’s the system we have, and it is what it is, so don’t read this as a complaint - just an observation. Of course, the people at the top are paid because of the wealth they create for shareholders, but imo if that wealth comes from just taking free cash flow and shoveling it into stock buybacks, I would consider it as just “average” because it’s too obvious a maneuver to be rewarded. And it means that they don’t see any better way to spend their money to drive growth, which doesn’t bode well for them as a leader or the economy as a whole. In a way buybacks just ‘fake’ growth in EPS by reducing the share count against what might otherwise be flat earnings. IMO the spoils should belong to people who actually make things happen, invest the resources well, drive organic growth, or manage through difficult situations.
The flipside to all this is you have to ask yourself how many companies really survive and thrive more than 30 years, or 50 years, or 100 years. Very few. As I know you know, Apple Computer was nearly crushed 20 years ago, and then became the #1 most valuable company on the earth. Will it stay at the top 30 more years? Drug companies lose patent protection. Entertainment gets stale. Technology changes. So the question of stock buybacks benefiting owners, yes in the shorter term perhaps. But stocks always fluctuate, and the market cycles, and individual companies ebb and flow. It’s sort of a question of when you got on and off the merry go round as far as picking individual winners go. Overall the market indexes go up, but that’s because they drop losers and add winners. Can you have imagined that Nike would be one of the 30 most important companies in the world? They have Chinese laborers make $1 shoes and sell them to yuppie kids for $300... Yet there it sits as one of the DJIA.
Last point, as earnings season is upon us will we catch a glimpse of what things might look like if we did not have the Trump tax cuts? It could have averted a major disaster. My only complaint is that there wasn’t a corresponding cut on wages. IMO wages for labor should not be taxed at all, but I’d consider a cut in taxes a good start to a zero rate.
I'm eyeing some AAPL for that reason. I'm 100% cash right now in my options allotment. Waiting to see if this bounce is really a bounce or not. This weeks discussion on the balance sheet will be interesting. In the meanwhile, I've made enough on the run-up-crash and re-run on /NG it hasn't mattered what the markets are doing. I was a meteorologist for 31 years in the AF and long-term climate and tropics are my specialties. Glad I get to put it to use with commodities such at NATGAS and crude.
And the implication in the entire discussion seems to be that stock buybacks are a selfish thing on the part of the companies, of no benefit to the workers. A very socialistic way of thinking.
https://www.quora.com/Do-stock-buybacks-reduce-the-market-capitalization-of-a-company
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