Low Vol And Massive Stock Buybacks---The Toxic Nexus

This tremendous demand for equities from largely price-indescriminate corporations has had a knock-on effect of crushing equity volatility: As Christopher Cole, the well-known Artemis hedge fund manager  who has been rightly warning that volatility has been artificially and dangerously depressed for a while, warned "Stock buybacks are in effect creating low volatility," adding that "Share buybacks are like a giant synthetic short-volatility position."

 

 

https://www.zerohedge.com/news/2018-02-25/day-reckoning-nears-goldman-projects-record-650bn-stock-buybacks

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.