{"id":2569,"date":"2014-12-07T10:10:06","date_gmt":"2014-12-07T15:10:06","guid":{"rendered":"http:\/\/olduvai.ca\/?p=2569"},"modified":"2014-12-07T10:10:06","modified_gmt":"2014-12-07T15:10:06","slug":"charles-hugh-smith-the-only-two-charts-you-need-to-understand-the-sp-500","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=2569","title":{"rendered":"charles hugh smith-The Only Two Charts You Need to Understand the S&#038;P 500"},"content":{"rendered":"<p><a href=\"http:\/\/www.oftwominds.com\/blogdec14\/SPX-FXY12-14.html\">charles hugh smith-The Only Two Charts You Need to Understand the S&amp;P 500<\/a>.<\/p>\n<p><span class=\"Apple-style-span\" style=\"color: #404040; font-family: Verdana; font-size: small; line-height: normal;\"><i>As long as corporations continue borrowing money to buy back their own stocks and the yen keeps dropping, the SPX will continue lofting higher.<\/i><\/span><\/p>\n<p><b>Why is the S&amp;P 500 rising, even as valuations are getting stretched, profit growth is declining and sales are stagnant? Two charts explain it all.\u00a0<\/b>Here is a chart showing the S&amp;P 500 companies that have been buying back their own stocks (often by borrowing cheap money to do so) and companies that haven&#8217;t bought back hundreds of billions of dollars in their own stock.<\/p>\n<p>The unmanipulated sector rose a bit, while the stock buyback crowd soared:<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/www.oftwominds.com\/photos2014\/SPX-buybacks.png\" alt=\"\" align=\"center\" border=\"0\" \/><br \/>\n<i>source:\u00a0<a href=\"http:\/\/www.businessinsider.com\/sp-500-buyback-index-outperformance-2013-10\" target=\"resource\">Business Insider<\/a><\/i><\/p>\n<p><b>Here is the S&amp;P 500, with red lines marking its recent lows:<\/b><\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>charles hugh smith-The Only Two Charts You Need to Understand the S&amp;P 500. As long as corporations continue borrowing money to buy back their own stocks and the yen keeps dropping, the SPX will continue lofting higher. Why is the S&amp;P 500 rising, even as valuations are getting stretched, profit growth is declining and sales [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1717,1716,1138,753],"class_list":["post-2569","post","type-post","status-publish","format-standard","hentry","category-economics","tag-buybacks","tag-sp-500","tag-stock-market","tag-stocks"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2569"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2569\/revisions"}],"predecessor-version":[{"id":2570,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2569\/revisions\/2570"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}