Stock buyback and emerging market

万得福

stock buyback:

Buybacks don’t work in any tangible way. Buybacks don’t drive earnings, create a “floor for the stock,” or return money to share owners. Apple took $5 billion in shareholder cash and vaporized it in the name of creating higher earnings per share.

Based on the early figures, the best guess is that about $500 billion worth of stock was repurchased by corporations in 2013. It's the second largest total on record, trailing only 2007. Note that in 2008 the S&P500 fell more than 38%, the third worst annual performance in market history.

http://finance.yahoo.com/blogs/breakout/apple-slammed--why-buybacks-are-for-idiots--macke-165054185.html

Emerging market:

For many, all of this sudden attention on small foreign economies and currencies makes no sense.

“When we had rates artificially low for a long time, capital globally was trying to find a home and it went seeking yield in these emerging markets,” Lutz explains. “And now that all of a sudden we’ve got tapering going on, we’re starting to see rates here and globally popping up and that’s making emerging markets a lot less attractive.”

And that’s where the contagion and interconnectedness of global markets comes in to play, he says, and why investors everywhere have once again found themselves tuned in to the Fed for relief.

http://finance.yahoo.com/blogs/breakout/apple-slammed--why-buybacks-are-for-idiots--macke-165054185.html