Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Short S&P 500 companies with excessive stock buybacks
I have the following trading idea but I do not know how to implement it:
The S&P 500 Index had very strong years but now I think that the uptrend(after the recent MA crossing) is broke. What is more the S&P 500 BuyBack Index,an Index invested in companies who recently repurchased stocks of its' own, outperformed the S&P 500.
Buybacks are a really bad in my opinion: It seems to boost EPS, has a short-term higher demand, comes often with a debt increase and shows that the company has no idea where to invest its' cash. For the investor it is like buying stocks with leverage. For the management compensation it's good because their salaries are often tied to the stock price/dividends.
These buybacks have been excessively executed in the last years mainly because of zero interest rates. Fed will probably/maybe increase their rates which will hurt these companies for sure.
That is why I want to short them.
There are some Long ETF's like powershares buyback achievers etf !
Any ideas how to short it till August 2016 ?? Instruments ?
Thanks
Can you help answer these questions from other members on NexusFi?