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1. Companies are borrowing money and going into debt to buy their own stocks. 2. Some stock holders and insiders have huge holdings, a perfect supplier for the
by ohiovr 7y ago
1. Companies are borrowing money and going into debt to buy their own stocks.
2. Some stock holders and insiders have huge holdings, a perfect supplier for the stocks to buy.
3. Stock volume exploded soon after trump was elected in the s&p 500 and the Dow. But a comparable surge in volume in the Russel 2000 and NASDAQ is not there.
4. As a result of the buying pressure, stocks rise, the market looks to rise in value.
5. Eventually money is not cheap to borrow any more.
6. More than 50% of the buying power suddenly stops.