Re:Was corporate profit growth a bubble inflated by "financi...
by raincom on Friday March 27, 2020 @02:49PM
(#22705618)
'flat' only if you see through the shenanigans; otherwise, EPS (earnings per share) have increased, by reducing the outstanding shares.
When interest rates are low, firms can finance to buy back. Not only that, investors shift their investments to stocks, instead of bonds. Two forces are at work to pump stocks, both forces are products of low interest rates.
When interest rates are low, firms can finance to buy back. Not only that, investors shift their investments to stocks, instead of bonds. Two forces are at work to pump stocks, both forces are products of low interest rates.