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Are Buybacks Worth Paying Up For?

Stock buyback activity is on pace to reach new, all-time highs (and it's only the end of February!) One reason for the gap between large-cap companies and small- and mid-caps is bigger companies' ability to pour cash into buybacks. Will election season cause Wall St. to reduce risk? GDP and Consumer Sentiment numbers all revised downward, but confidence remains high in markets' ability to perform. Lance & Michael discuss volatility in portfolio performance within complacent markets (volatility is negatively correlated with markets.) Indicators are never perfect; avoid basing portfolio on just indicators. Examining the pace of stock buybacks: Are they really of value? Why pay a premium? Buybacks increase share price, not value. Apple vs Tesla: There has been no real innovation from Apple to warrant expensive stock price. Companies buy back stocks at the expense of R&D investment = innovation. PCE preview & commentary: it's a one-month number. What's the trend show?

3:14 - Stock Buybacks on Pace for New All-time Highs
14:41 - Volatility vs. Complacency
30:13 - Are Stock Buybacks Really a Value?
44:30 - Why Are Apple Valuations High w/out Innovation?

Hosted by RIA Advisors Chief Investment Strategist Lance Roberts, CIO, w Senior Financial Advisor Danny Ratliff, CFP
Produced by Brent Clanton, Executive Producer
Articles mentioned in this report:
"Apple's Magic- Are Buybacks Worth Paying Up For?"
"This Is Nuts – An Entire Market Chasing One Stock"
"Small Cap Stocks May Be At Risk According To NFIB Data"
"Conference Board Scraps Its Recession Call"
The latest installment of our new feature, Before the Bell, "Markets Are Heading Towards Reversion in Stock Prices," is here:
Our previous show is here: "11 Pearls of Investing Wisdom from Warren Buffett"
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Lance Roberts
Finally, financial news that makes sense. Lance Roberts, the host of "StreetTalkLive", has a unique ability to bring the complex world of economics, investing and personal financial wealth building to you in simple, easy and informative ways but also makes it entertaining to listen to at the same time.
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