The real story during earnings season isn’t in the earnings reports.
U.S. companies aren’t allowed to buy back their own stock around the time they report earnings. The industry calls this the blackout window. Around October 12, only 24% of S&P 500 companies, weighted by market cap, were in the window; the other 70%-plus couldn’t buy back their own shares even if they wanted to. As companies reported earnings, they gradually got the green light again. By November 9, that figure had risen to 85%.
This year, these companies approved a record $1.3 trillion in buybacks. Most of that money is tied up for now, but it’ll be released bit by bit over the next two or three weeks. November has historically been the busiest month for buyback execution.
So if U.S. stocks rally in November, don’t be too quick to treat it as bullish news for crypto. That’s companies using their own money to buy their own stock. It’s not the same as new money flowing into the market.
There’s no such thing as buybacks with BTC. No “company” is going to dip into its own cash reserves to buy BTC when prices fall. At $82,000, the only buyers on the way up are ETFs and retail investors. That’s all the buying power we’ve got.
The first time I heard about the buyback window, I thought it was some kind of exchange promotion, haha.
I’m leaning a little bullish on U.S. stocks in November. For BTC, I’m holding the line at $80,000. I won’t short unless it breaks below that. #股票财报季
U.S. companies aren’t allowed to buy back their own stock around the time they report earnings. The industry calls this the blackout window. Around October 12, only 24% of S&P 500 companies, weighted by market cap, were in the window; the other 70%-plus couldn’t buy back their own shares even if they wanted to. As companies reported earnings, they gradually got the green light again. By November 9, that figure had risen to 85%.
This year, these companies approved a record $1.3 trillion in buybacks. Most of that money is tied up for now, but it’ll be released bit by bit over the next two or three weeks. November has historically been the busiest month for buyback execution.
So if U.S. stocks rally in November, don’t be too quick to treat it as bullish news for crypto. That’s companies using their own money to buy their own stock. It’s not the same as new money flowing into the market.
There’s no such thing as buybacks with BTC. No “company” is going to dip into its own cash reserves to buy BTC when prices fall. At $82,000, the only buyers on the way up are ETFs and retail investors. That’s all the buying power we’ve got.
The first time I heard about the buyback window, I thought it was some kind of exchange promotion, haha.
I’m leaning a little bullish on U.S. stocks in November. For BTC, I’m holding the line at $80,000. I won’t short unless it breaks below that. #股票财报季
