Overvalued Stocks are Ruining the Economy - Rory Hall

Sep 13 16:09 2017 Print This Article

September 13, 2017

From our perspective, the the corporate stock buybacks have been doing

major damage to corporate America. If these companies were not buying

their own stock for the past three years their “price” would be half or

less than it is today. Who in the right mind believes Amazon’s stock is

worth upwards of $1,000 per share? What is this based on?

The damage corporate stock buybacks has done to the economy can not

be over-emphasized. If the “C” level executives are simply “recycling”

company stock and driving the price higher they are unable to reinvest

in the company. This means no new equipment, no new hires, no R&D

and the list continues. This is destructive to the economy. Nothing


Now we see the S&P littered with overvalued stocks. This is not

going to end well and as the economy continues to rot-on-the-vine as “C”

Read More

About Article Author

Sprott Money

Established in February 2008, Sprott Money Ltd. is a leading precious metals wholesale, institutional and retail dealer selling gold, silver and platinum bars, coins and wafers online and over the phone. Sprott Money's storage program gives clients the ability to store their precious metals in multiple storage facilities located in Canada, the United States and internationally. Sprott Money Blog, which covers world events, geopolitics and of course precious metals.

Related Items

To and Fro , here we go

To and Fro, here we go Firming US yields overnight contributed to a stronger USD outperformance with the DXY breaching the 94 resistance level. While economic data drivers were few and far between dealer’s were left to chew on remarks by European Central Bank Mario Draghi, German Politics and of ...

USD/CAD Canadian Dollar Lower Ahead of Short Trading Week

The Canadian dollar depreciated on Monday versus the US dollar. Oil prices fell as higher production from the US is putting downward pressure on prices ahead of the Organization of the Petroleum Exporting Countries (OPEC) meeting on November 30. The production cut agreement between the OPEC and oth ...

Gold Versus Bitcoin: The Pro-Gold Argument Takes Shape - John Rubino

November 20, 2017 Sound money advocates who love the concept of cryptocurrencies but don’t want to abandon precious metals have been trying to clarify their thoughts of late. Risk Hedge just helped, with a comprehensive statement of the pro-gold position. The following is an excerpt. Read the ...

Gold Volatility Continues over Tax Reform Prospects

Gold has posted sharp losses in the Monday session. In North American trading, the spot price for an ounce of gold is $1277.84, down 1.2% on the day. On the release front, the sole event is CB Leading Index. The indicator gained 1.2%, well above the forecast of 0.6%. On Tuesday, the US will publis ...

Inflation and Counterfeit Credit - Keith Weiner

November 20, 2017 Let’s take a look at an often-repeated idea that is popular in the gold and alternative investing communities. The government possesses a printing press. Therefore, it will never default. It will just inflate its way out of the debt. It will devalue the dollar. The government do ...

Millions Upon Millions of Americans Have “Negative” Wealth - Rory Hall

November 20, 2017 While 3 Americans possess more wealth than 50% of the combined poorest, we now learn that 20% of ALL Americans have zero or negative wealth. I presume by having “negative wealth” they have lived beyond their means for so long their debt burden is all they have to show for t ...

Robotics, Automation And The Changing Oil, Gas Workforce

HOUSTON—The drive to become more efficient and cost-effective in the oil patch has led the industry into a new digital age where machine learning can help predict when equipment may fail based on historical data and robots are capable of tackling routine or repetitive tasks. But what does that mea ...

Private Equity's New Competition?

PE Hub posted a Reuters article, Private equity to face competition from investors, says Carlyle Co-CEO:Private equity firms are awash in cash, with nearly US$1trn of available capital, but the industry is facing internal competition as limited partner (LP) investors seek to play a more active role ...