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I watched a video this a.m. about a looming stock market crash following secret meeting on DEC 1. and started googling the name TED BAUMAN and it seems he's been pitching his crash theory since May 2018. secret meeting date keeps slipping AUG.1.... DEC.1. So, my initial take away is it's BS.
Except.....
the questions: WAS 1929 stock market crash due to stock buy backs?; Were they outlawed and then loop holed (Rule10-18B)? If so, How many big companies are practicing it and could it cause a crash eventually even if it isn't made illegal again. HOW long can any given CEO continue this shady practice in theory?
Even if we're foolishly invested, when a crash hits everybody takes some measure of a hit. I've been wondering about all the CEOs being asked what they'd do with their tax cuts gains and most said they'd buy back stocks over reinvesting in the business.
SO, in a nut shell, what real and whats memorex?
and is there cause for concern?
Leeseesooka
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No, the Great Recession was not caused by stock market buybacks. And yes, I would probably disregard Bauman's "theory" if I ever gave it an ounce of attention to begin with.

The crash followed a speculative boom during the 1920's in steel production, building construction, retail, automobiles, even railways. In other words, the whole economy. The more share prices rose, the more investors believed they could never fall. Brokers were lending money to investors to turn around and plug back into the market (margin).

And what happens to bubbles when someone comes along with a sharp object?

In this case, it was agriculture. Strong harvests of wheat led to a global oversupply, driving prices down. Congress approved a $100m relief package for America's farmers but the bubble was quickly losing air. Automobile sales, the housing market and steel production were all experiencing slowdowns, and after a 10% market drop at the end of September, the selling panic selling snowballed. Margins were called and there wasn't enough cash to cover the losses. Short of cash, financial institutions closed to prevent runs on the banks.

So margin buying, overpriced stocks and a lack of legal protections separating banking and investing, and certainly sensational headlines all contributed to the market collapse. But not share buybacks.

At least, that's how I learned it.

Fuskie
Who notes prior to 1981, all share buybacks were on the open market; it wasn't until after that repurchases were made through fixed price tender offers or a dutch auction...


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Doctors read X-rays, professional traders read charts every day and at night before hitting the hay.

During the 1929 stock market, my grandparents and my parents bought a ton of CEF's and were collecting nice dividends checks. Adams Diversified Equity Fund (ADX) and they are still are around alive and kicking butt.

https://www.marketwatch.com/story/these-4-funds-launched-bef...
https://www.forbes.com/sites/brettowens/2017/03/21/my-no-1-r...


https://www.tradingview.com/chart/?symbol=TVC:DXY if this hits below 85 all hell will break loose.

with the below, you should have had your finger on the trigger around 10/11/2018 to protect your ASSets. Chill out and come back in when the coast is clear.

http://schrts.co/5jJPA2

http://schrts.co/8QyBqp

SPXL / SPXS something to ponder while sitting on ye royal throne and think about the thought of Tetter Tottering.

just a thought

Quillnpenn - a poor church mouse scratching for a living as a Retail Trader.
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