With increasing market uncertainty, Share Buyback is gradually becoming an important driver of US stock returns. Against the backdrop of a possible slowdown in market growth, how will buybacks affect investors' returns? This article will delve into this trend and its potential impact.
---
The Rise of Share Buyback: The Truth Behind the Data
December is traditionally the peak period for share buybacks in the US stock market. This year, the funds allocated for buybacks are expected to reach a historical high. According to Statistics, S&P 500 Index component companies invested $790 billion in buybacks last year, and Goldman Sachs predicts that this year's buyback amount is expected to approach $1 trillion.
This type of capital allocation is not accidental. Share Buyback is gradually replacing traditional dividends, becoming the main tool to enhance shareholder returns. Since 2000, although the dividend yield of companies has decreased to an average of 1.9%, the addition of share buybacks has brought the total return back to a stable 4.6%. This indicates that even though the company has changed its distribution method, shareholders' overall ROI is still guaranteed.
---
Share Buyback and Long-term Returns: The driving force behind stability
From a long-term data perspective, the two main pillars of stock market ROI are profit distribution (such as dividends or share buybacks) and earnings growth. The average annual total ROI of the S&P 500 since 1871 is 9.3%, with nearly half coming from profit distribution. With the relative decrease in dividends, the role of share buybacks is becoming increasingly important, filling the gap in shareholder returns.
---
Controversy and Reality: Is Share Buyback Harmful?
Although Share Buybacks...

This Wednesday, the global financial markets are set to face a dual challenge of intellect and emotion. From Asia to Europe and then to the Americas, several major events are coming in quick succession, roiling the stock market, foreign exchange market, bond market, and commodity market. Here are the top three focuses you must pay attention to today:
---
Focus One: The aftermath of the "emergency martial law" in South Korean politics has not subsided, causing ongoing market fluctuations.
South Korean President Yoon Suk-yeol issued an "emergency martial law order" late Tuesday night and lifted it in the morning, leading to a nearly 2% drop in the South Korean KOSPI index at the opening. However, the South Korean won has gradually stabilized during the Asian session, recovering half of the overnight decline, indicating that the market is digesting short-term panic emotions.
Yoon Suk-yeol's approval rating has recently hit a new low, increasing the pressure of governance. In addition, the standoff with the opposition party has escalated further, making South Korea's future political situation even more unpredictable. Goldman Sachs analysts believe that the short-term panic may bring "buying opportunities," especially for South Korean stocks that have been mismatched by the political situation.
Investment tip:
Focus on financial and technology stocks in the South Korean stock market affected by political events.
There may be trading opportunities for the South Korean won to rebound in the forex market, but caution is needed against further political turmoil risks.
---
Focus Two: The French government may face a vote of no confidence, with political turmoil on the brink.
Local time on Wednesday afternoon, the French Parliament will hold a vote of no confidence against the Castex government. If the vote passes, Castex will become the shortest-serving prime minister since the establishment of the Fifth Republic of France, putting the French government in a precarious position by the end of the year...

Will Wall Street's support enable US assets to lead globally again in 2025?
Hello everyone, welcome to my channel! Today, we are going to discuss a topic that investors cannot ignore - whether the US market can continue to be the global leader in capital by 2025. From UBS Group to Fidelity International, mainstream institutions on Wall Street are optimistic about US assets. But what are the driving forces behind this? How should we respond to the current market dynamics?
Content Outline
1. The Latest Performance of the USA Market
This week, the S&P 500 index rose against the trend in the shortened trading week due to the holiday, up 1.1%, outperforming the benchmark stock indexes in Europe and Asia.
How do rising inflation data, Trump's tariff threats, and the Fed's policy signals affect market sentiment?
2. Capital flow and valuation differences
According to data from Barclays, despite the high valuation of assets in the usa widening the gap with other markets, over the past month, funds have still been flowing into US stocks at an accelerated pace, while Europe and emerging markets have experienced capital outflows.
What makes capital so fond of the usa?
3. Global Comparison: USA vs Europe and Asia
The European market has been in a downturn due to political turmoil and economic decline, with French government bond yields hitting new highs.
Asian markets only saw a slight increase this week, in contrast, the stable performance of the USA has attracted more attention.
How should investors respond?
UBS Group's portfolio manager emphasizes that the profit growth in the USA...

Dear investors, following the dust settling from the November US election has injected a strong shot in the arm for the market, the three major US indices have successively hit new highs! But after the celebration, will December continue its strength, or is there hidden risk? Today, we will help you stay ahead of the key investment events in December!
📈 Wall Street's gold prediction
Renowned strategist Mary Ann Bartels suggests that US stocks may be entering a "golden age of investment", with enormous potential! Especially in December, one of the most impressive months for US stocks throughout the year, many investors are anticipating the return of the "Christmas rally"!
The magical power of the Christmas market trend, do you understand it?
Data tells us that over the past 70 years, the s&p 500 index has had a staggering 78.9% probability of rising in the last seven trading days of the year! The magic of the "Christmas market trend," which includes the last five trading days of the year plus the first two trading days of the new year, really cannot be ignored. This also makes December an important time for positioning.
🔔 Key events to watch in December
1. FOMC Interest Rate Meeting: The last FOMC meeting before Trump left office, Powell's stance will be the market focus.
2. Major Economic Data: Non-farm Employment, CPI, PPI will be announced soon, the data may directly influence the market trend.
DealBook/Summit Interview with Powell: On December 5th, any words from the Fed Chairman could trigger market turmoil!...