Vote Now | JPMorgan: A stock market bottom is near. What do you think?
A record surge in corporate buybacks could help the stock market find its bottom, JPMorgan said.
In the latest sell-off, buybacks increased three to four times higher than usual during the ongoing sell-off, implying the corporate put remains active. Besides, $S&P 500 Index (.SPX.US)$ companies have announced $429 billion of buybacks in 2022. That level represents a more robust year-to-date pace than 2019 and 2021.
In the first quarter of 2022, buybacks were up 45% year-over-year and 3% quarter-over-quarter. Much of that growth was in the tech, financials, and healthcare sectors, with stock buybacks totaling $62 billion, $49 billion, and $39 billion. Energy companies also significantly ramped up their stock buyback activity as they benefit from higher oil prices, with the sector buying back $9.5 billion in stock compared to just $500 million in the first quarter of 2021.
JPMorgan believes that the trend of elevated stock buybacks should remain for the next few weeks as more companies come out of the blackout period after having reported quarterly earnings results.
Besides, JPMorgan also sees end-of-month rebalancing flows driving 1% to 3% in equity outperformance over the next week. That, combined with the worst investor sentiment since the Great Financial Crisis in March 2009 and corporate solid stock buybacks, gives JPMorgan the conviction that a stock market bottom is near.
So mooers, What do you think? What is your opinion? Leave your comments below.
Source: Businessinsider, JPMorgan
$S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Dow Jones Industrial Average (.DJI.US)$
$S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Dow Jones Industrial Average (.DJI.US)$
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富贵健康 : Look again, because the money of Xiao San is limited. No better than those institutions.
FYY 富贵健康 : I think you are right
71707650 : Thanks for the confirmation the markets going down another 25%-45%
KingNY-Life : I don't believe it
102405503 No limit : simple..no capitulation
SpyderCall : possibly a short term local bottom. There should be more downside in the future but we could have some green weeks ahead before falling more
happyguy25304 : How the mighty fall