The next time your friendly, local, asset-gathering, commission-taking, wealth-transferer explains that "you should BTFATH because stock valuations are supported by the fundamentals" - show them these two charts.
Now - what do you think will happen when the Fed turns off the QE tap?
The U.S. economy has had six full years to bounce back since the financial collapse of 2008, and it simply has not happened. Median household income has declined substantially since then, total household wealth for middle class families is way down, the percentage of the population that is employed is still about where it was at the end of the last recession, and the number of Americans that are dependent on the government has absolutely exploded. Even those that claim that the economy is "recovering" admit that we are [...]
One look at the chart below showing Q1 Bed Bath And Beyond (BBB)Buybacks, and we have just three questions:
Is the entire management team about to quit, but not before cashing out of their equity-linked securities first?
No further commentary necessary, although perhaps it is worth noting that in a quarter in which BBBY spent 30 cents of every dollar from its $2.94 billion in sales on $1 billion in buybacks, or about 3 times more than its $368MM in cash from operations, it also spent a "whopping" $88 million on CapEx.
All joking aside, here's what happened: in Q1 [...]