Nancy Tengler from Laffer Tengler Investments discussed the impact of corporate debt on buyback plans during the first trading day of the fourth quarter. She also addressed the economic policies of Kamala Harris and her approach to investing in small-cap stocks.
Positive
The trend of companies using debt for stock buybacks could lead to short-term boosts in stock prices as buybacks generally increase earnings per share. However, this strategy poses long-term risks if companies accumulate too much debt or if interest rates rise significantly.
Negative
As interest rates increase, the cost of servicing debt will rise, potentially leading to a decline in companies' stock prices. Investors should be cautious about sectors heavily reliant on corporate debt for buybacks.
Capitalist Pig hedge fund manager Jonathan Hoenig weighs in on market rallies, his concern for everyday Americans amid inflation, and his stock pick.
Oct 11, 2024, 12:25 PM
JPMorgan Chase & Co. chief Jamie Dimon on Friday sounded the alarm about "critical risks" to the U.S. economy in the bank's third quarter earnings report.
Slatestone Wealth Chief Market Strategist Kenny Polcari discusses the market rallying following the inflation report, Jamie Dimon's warning of geopolitical risks, and how he fared during Hurricane Milton.