We are starting to see stock buyback action comparable to the last time we were late in the business cycle.
Quote of the Day
Word of the Day
Business cycle – Investopedia defines the business cycle as “the rise and fall in production output of goods and services in an economy.” Investing Answers explains it as follows:
An expanding economy is characterized by low unemployment, high productivity, and high consumer spending. When there is a decline in productivity, business revenues start to decline. Companies, consequently, reduce their workforces to cut costs. This results in rising unemployment and lower consumer confidence and spending, which are all hallmarks of a recession.
As the recession weakens, incremental increases in productivity and revenues lead to an economic recovery. The unemployment rate is gradually reduced as companies begin hiring again. A decreasing unemployment rate leads to an increase in consumer confidence and spending, and the economy begins expanding again.
One economic indicator that shows the business cycle at work is the unemployment rate, seen in today’s chart of the day.
Chart of the Day
Unemployment is at an historically low level of only 3.9%:
The Fed Is About To Kill The Credit Boom
Gary Gordon, Seeking Alpha, 05.10.2018
Jim Rogers Worries About Exploding Debt With Rising Interest Rates
Value Walk, 05.13.2018
Why the Buyback Boom Is Bullish for Investors
Andrew Bary, Barron’s, 05.12.2018
Three Things You Should Know about the Buyback Furor
Donald Marron, 04.18.2018
Rethinking Environmental Agreements
Edward B. Barbier, TripleCrisis, 05.09.2018
2 Chart Patterns That Every Investor Should Recognize
Ralf Lai, Investing Haven, 05.14.2018
In Case You Missed It
What Will Cause The Next Stock Market Crash?
Douglass Gaking, Seeking Alpha, 04.26.2018