Tuesday, November 3, 2015

It's Buyback Season

If you're a fan of stocks that buy back their own shares, now is the time of year to start paying attention to the market. For the past few years, November has been the busiest month of the year for company share repurchases, according to research from Goldman Sachs Group, with 13 percent of all buybacks happening in that month.

On top of that, December is tied for the third-most active month. So from now till the end of the year, historically speaking nearly 25 percent of all company share buybacks are likely to happen.

That may be part of the reason that November and December tend to be a strong time for stocks. Since 1971, November has been the fourth best month for the Dow Jones industrial average, gaining an average of 1.2 percent, and December has been the second best month, gaining an average of 1.7 percent.

No comments:

Post a Comment