Corporations are busy gobbling up overvalued companies with their own overvalued shares of which they can print an unlimited amount, and with debt that is nearly free after inflation, and/or with cash rather than investing it in plant, equipment, and personnel. So M&A activity in the US jumped 60% this year. But LBOs, playground for the ultimate “smart money?” They’ve plunged to the lowest level since crisis year 2009.
Read… The ‘Smart Money’ Unloads, Sits on Cash, Waits for Stocks to Swoon