Moscow, August 9 — “Conduct. Economics” the Us stock market is recovering from its recent sell-off. For the past three session, the indices managed to regain more than half of the losses. Who buys cheap shares?
Like last year, the largest buyers of the shares of steel companies themselves, which send bibek enormous amount.
In 2018 to buy back their stock, they sent almost $1 trillion, and this, according to analysts Goldman Sachs, this figure will reach $1.5 trillion.
On Monday, when indexes are refreshed local lows, corporations have dramatically increased the activity and started buying the stock, which led to growth of quotations, told Bloomberg chief strategist for the US equity Goldman Sachs David Kostin.
[PICTURE] Zerohedge [/PICTURE] the Trading Department of the Bank recorded a powerful burst of requests for the repurchase of shares from its customers.
Often the work of the head of the company evaluate how times of the cost of shares, so whenever possible, conditional, General Director begins to use “ammunition” to increase the value of the company.
Obviously, so did all the famous Apple CEO Tim cook.
“Companies are very price sensitive,” explains Costin. As the situation developed in may, when after two weeks of correction, the company began to buy their own paper, and another two weeks later, the indices went up there.
By the way, a further reduction of the rate in which the market is still no doubt, will only add to the dynamics of the growing stock. It does not matter, will prevent the fed so the coming recession or not — the important thing is that companies will get more cheap loans, and the money will be spent on buyback.
Benjamin Dow of Bloomberg notes, it is now becoming clear that the channel creation capitalization of the fed now goes through the corporate sector.
Moreover, companies no reason to invest in the extension at the end of the economic cycle, you can just send the money for the purchase of shares.
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