The Watchman Letter: Who is the number one buyer causing the 2019 Stock Market Rally ?

in #money6 years ago (edited)

In the January the Investors shorting the Markets were forced to purchase stocks helping the stock Market Rally.

Jan 2019 shorts.JPG

But they ranked second in total stock buying frenzy.
So who is number one ?

2019 corporate buy backs.JPG

Yes, Corporate Stock Buy Backs are reaching a record setting pace for 2019. CEO's are borrowing from the Bond Market to finance their Stock Buy Backs, while selling their own compensation shares. Stock Buy Backs will reach $1 Trillion for 2019.

The good news is the Retail Investors are not buying this Rally. They are still recovering loses from 2018. But how much longer will the Retail Investors wait until they get sucked in to buying over valued Stocks again.