Re(1): Is a Market Crash Imminent? Posted on 12/16/2018 at 11:43:09 by Bill Crawford, (14)
Although stock buybacks were not banned in Aug. 2018, causing a market crash, as predicted by Mr. Bauman,
I guess there is a possibility that the following scenario might unfold:
Stock buybacks were banned by the Securities Exchange Act of 1934 because of their possible contribution to the 1929 stock market crash; i.e. stock market buybacks pushed the markets to such artificial highs that when companies cut back on those buybacks, that contributed to the market crash..
(This ban was lifted in 1982).
I guess there is a possibility that that might happen again.
Here is an excerpt from from an article in Forbes Magazine on the subject:
"..The danger is that when the “Trump Trade”, based on enthusiastic expectations, dies, the negative sentiment will weaken the economy, send buybacks into a tailspin, thus removing the biggest support for the market.."
[I found another article which indicated that there has recently been a significant decrease in stock buybacks]. Replies: