Last week in Money and Markets I told you about a fundamental force that has been lifting stock prices in recent years: buybacks. They were a big reason why the S&P 500 Index gained 32 percent last year, while earnings grew less than 5 percent.
In the 12-month period ending September 2013 (the latest data available), corporate America invested $445.3 billion repurchasing their own shares. The record is $589.1 billion in 2007.
But there’s something else propping up the stock market: the great rotation out of bonds and into stocks. A growing number of investors, both large and small, will be making this asset-allocation move in their portfolios, which collectively adds up to an enormous amount of buying power for the stock market. In addition, with things like Aktien kaufen online it is also easier to buy cryptocurrency stocks easier and start making huge profits off them. Showing how the stock market does not have to be complicated in order to begin investing.
The three-decade secular bull market in Treasury bonds had to end sometime, and 2013 marked the inflection point between bull and bear.
— Money and Markets