share repurchases

What’s Worth It

By |2018-09-25T17:40:07+00:00September 25th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

Earlier this year, two law professors at the University of California, Berkeley School of Law took issue with of all things Tobin’s Q. Though named for James Tobin, the idea had been introduced much earlier by several people. Tobin popularized one view of the concept. Robert Bartlett and Frank Partnoy objected to many of the [...]

Buybacks Get All The Macro Hate, But What About Dividends?

By |2018-07-11T18:33:17+00:00July 11th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

When it comes to the stock market and the corporate cash flow condition, our attention is usually drawn to stock repurchases. With good reason. These controversial uses of scarce internal funds are traditionally argued along the lines of management teams identifying and correcting undervalued shares. History shows, conclusively, that hasn’t really been true. Last year’s [...]

Stubborn Recoveries And The Bad Ideas That Follow From Them

By |2018-02-20T12:13:45+00:00February 20th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

We have ample enough evidence for the efficacy, or inefficacy really, of tax cuts as fiscal stimulus. They have been deployed numerous times all over the world the last ten years, and the results have been nearly identical in all. Most charitably, proponents have been left with some form of “jobs saved” to describe, counterfactually, [...]

Why Bubbles Are Being Recognized

By |2014-11-12T13:12:15+00:00November 12th, 2014|Bonds, Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

The nature of liquidity under the eurodollar standard is to essentially link “markets” that outwardly seem to have little or no relation. You can see the synchronized ups and downs quite clearly but miss the ultimate connection, especially under the orthodox assumption of the world’s economies and their “natural” finance as mostly closed systems with [...]

More of 2008 From IBM

By |2013-10-17T10:43:34+00:00October 17th, 2013|Markets|

Quarterly results from IBM are watched because they serve as a proxy for business spending across the globe. Capex in the modern world often takes the form of technology/computer investments. In fact, productivity growth in the past three decades has been driven, at the margins, by corporate investments in digital technology. Ever since late last [...]

If Hasn’t Already, It Is Beginning Now

By |2013-08-06T17:15:21+00:00August 6th, 2013|Markets|

The fact that companies coming out of the Great Recession have been running lean in terms of labor costs cuts both ways. It is a negative factor for employment growth since businesses have been very reluctant to add to staff levels without sustained revenue growth (which never materialized outside of currency translations). However, it also [...]