Are you hoping for a return to big company buybacks? For the few years before last year’s big losses, buybacks were a big part of the nice returns seen by the market. A return to such behavior, while questionable on the part of companies, would likely help support share prices. Well, JP Morgan thinks it’ll be another major year for buybacks. Just like last year, companies are expected to announce over $1 tn of buybacks on the back of the benefits from Trump’s tax cuts. Overseas cash is expected to help power the repurchases.
FINSUM: We are not particular fond of the underlying financials of buybacks (at least when companies issue debt to do so), but do think this would be very supportive of share prices this year.