Legend Art Cashin says we are seeing a rally in stocks, gold and oil. Here is the reason why…
Record Buybacks
March 6 (King World News) – A portion of today’s note from legend Art Cashin: The Shrinking Pie – Lots of pushes and pulls from things like trade policy and politics. But a steady influence is the tidal wave of buyback money that continues to pour into the marketplace.
Here’s a note on the topic sent in by an old and astute friend:
TrimTabs IR: Buybacks reached $113.4 billion in February, the most since April 2015. $5.8 billion in buybacks per day during the current earnings season, a record. Share buybacks announced by large U.S. companies have exceeded $200 billion in the past three months, more than double the prior year, according to WSJ.
Overnight And Overseas – Global markets kicked into high gear, first in apparent response to Gary Cohn’s attempt to dilute or even head off the tariffs by setting up a meeting with Trump and key business leaders. In the last ninety minutes, the rally got a further boost by hints of some North Korean cooperation.
In Asia, Tokyo shot higher as Kuroda seemed to back off imminent tightening. The Nikkei was up nearly 2%, bouncing off 5 month lows. Hong Kong was up 2%, while Shanghai and Australia rose 1%.
In Europe, markets are also rallying with trade war players, like the automakers leading the way.
Among other assets, Bitcoin took a hit and is trading back below $11,000. Gold and crude are both rallying with WTI challenging $63. The euro is flat against the dollar and yields are plain flat.
Consensus – Bulls have a lot of arrows in their quivers this morning. From apparent Korean overtures to the potential of a Cohn tariff meeting.
Stay wary, alert and very, very nimble.
***KWN has just released the remarkable audio interview with investing legend Rob Arnott, who oversees $210+ billion, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
ALSO RELEASED: Gerald Celente – Fade Rally In Stocks, Market Meltdown Coming And It Will Be Brutal CLICK HERE TO READ.
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