One of the biggest sources of demand for equities remains the companies themselves.
Its the self reinforcing cycle of higher asset px -> higher sales -> better cash flows -> more buybacks -> higher asset px… pic.twitter.com/Ykm3XvLw1i
— Bob Elliott (@BobEUnlimited) March 13, 2024
You know, it’s a bit like a never-ending loop – when stock prices climb, companies tend to do better, which means they have more cash to play with. And what do they do with that cash? Well, a lot of times, they buy back their own shares. And guess what happens then? Yep, you got it – those higher stock prices just keep on climbing. What happens when it breaks?
According to Tavi Costa, if you want to know how everyone’s feeling about the market right now, all you need to do is glance at the headlines in Barron’s and The Economist. Spoiler alert: it’s all sunshine and rainbows out there!
The Barron’s and The Economist covers is all you need to know about the current state of market sentiment today. pic.twitter.com/3vkHmvXTlp
— Otavio (Tavi) Costa (@TaviCosta) March 16, 2024
And here’s a little nugget for you: options trading is through the roof lately. The Options Clearing Corp. is seeing record-breaking volumes. Seems like everyone’s trying to get in on the action.
But let’s not forget, folks, that this ride isn’t without its risks. If this cycle were to break, it could spell financial disaster. So buckle up, keep your eyes peeled, and let’s see where this wild ride takes us next!
Options volume is at record highs, per Options Clearing Corp: pic.twitter.com/cbXEWbdHav
— unusual_whales (@unusual_whales) March 18, 2024