Market comment 2021

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These buybacks come after share prices have surged in a historic manner, following a historically reckless money-printing binge by the Fed and other central banks, and by historically reckless interest rate repression in face of red-hot and worsening inflation. But note how buybacks collapsed to $89 billion in Q2 2020 and to $102 billion in Q3 2020, after share prices had plunged. This was based on the corporate strategy of buying high to drive up share prices even further when they’re already high, and not buying when share prices are low. When prices are high, this is also when insiders are dumping their shares, as they’re now doing, and it’s that much more important for companies to buy back those shares that insiders are dumping.

 Share Buybacks Surge to Record ahead of Potential 1% Tax: Companies Buy as Insiders Dump like there’s No Tomorrow | Wolf Street

Despite multiple technological breakthroughs in the fight to control COVID-19, twice as many people died from it in 2021 compared to 2020. The Omicron variant is a stark reminder that effective vaccines are merely the first step toward ending the pandemic. Until we establish a process to manufacture vaccines at scale and distribute them where they are needed, we will lack the collective capacity to curb this or any future pandemic.

 Health Innovation for All by Mariana Mazzucato & Jayati Ghosh - Project Syndicate