this post was submitted on 13 Nov 2024
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Here is my uninformed take.
Buffet selling Apple, the #1 share buyback company, tells me that they're expecting western companies to stop engaging on share buybacks ( using their business profits to buy shares and thus inflate stock prices, rewarding shareholders ), and start using their profits to reinvest in production. Tariffs are not going to save them from Chinese companies, the US market, while being huge, is no longer the only relevant one, the world has changed.
I think investment funds are betting ( or more likely, have insider information ) on western companies to acknowledge the current world context, and start dropping their neoliberal paradigm since this is a do or die moment for them.
Yeah, no. The western companies cannot reinvest like that. They are beholden to increase their share value above all else. It's actually US law they have to do this. The companies obligations are to the shareholders. The oligarchy knows a crash is coming. They've spent the years since COVID to get their affairs in order and have been kicking the can with the Federal reserves. That's why all the big banks and hedge funds have been buying up all the land they can. It's the most necessary physical asset to own in a failing economy.