Financial Post’s Larysa Harapyn speaks to Rosenberg Research chief economist David Rosenberg about what happens when you combine one of the weakest economic cycles of all time with one of the most powerful bull markets.
Corporate Earnings Went Down in 2019
Even though Earnings went down for quarters in row: 2019 Q1, Q2, Q3, Q4. (Article: Sept 21)
Stocks went up Anyway
Stocks went up 30% because the market is not correlated with the economy due in part to corporations buying back their stock.
Stanley Druckenmiller on Economy, Stocks, Bonds, Trump, Fed: Full Interview
How Buybacks Have Warped the Stock Market & Boeing (w/ Dr. William Lazonick)
Dr. William Lazonick, co-founder and president of The Academic-Industry Research Network, sits down with Real Vision’s Max Wiethe to dissect the evolution of the stock market and the modern American economic system. Citing Boeing as an example, he contends that the stock market is being used to loot previously innovative corporations as insiders and outsiders alike are incentivized to push stock prices higher. He also argues that American competitiveness is being sapped as companies prioritize stock buybacks over investing in research and development, building new infrastructure, and paying off debt. Lazonick explains how this focus on short-term profits has led to unstable employment, sagging productivity growth and a loss of international competitiveness. Filmed on December 6, 2019 in New York.
Are Stock Buybacks Driving Wealth Inequality?
Ben Hunt joins Michael Batnick and Downtown Josh Brown at The Compound to explain what he’s so angry about – he sees wealth inequality as being driven by hijacked narratives about capitalism, stock buybacks, central banks and the managerial overclass orchestrating it all.