Do Stock Buybacks Dilute Return of Capital to Shareholders?

For anyone that has been following the Democratic nomination race in American politics, you’ve probably noticed that a key issue has been the treatment of stock buybacks. Democratic candidates opposing stock buybacks say that they contribute to rising income inequality in the United States. The candidates have therefore proposed plans ranging from outright bans to…

The Downsides to Zero-Cost Commission

This week, financial services firm Charles Schwab announced that they would be eliminating trading commissions for stocks, ETFs, and options listed on U.S. or Canadian exchanges for clients using mobile or web applications. Though the press release stated the motive was to lower barriers for investors, it was likely done in response to initiatives from…

Will Value Stocks Rebound?

Last week in Sagacious we featured an opinion piece on the challenges involved in sticking with an investment strategy that has recently been underperforming. This week, the Wall Street Journal published an article that examined the extremely long period of underperformance value stocks have experienced relative to growth stocks. The investment strategy of buying “cheap”…