Financial Engineering is a hot topic lately, here is an example of “financial engineering”, take a look at the chart below.
The green line shows the increase in stock values since 2000 of S&P 500 companies that have engaged in buying their own stock, compared to the red line showing those S&P 500 companies that have not.
Since 2000, generally heralded as the start of the “era of financial engineering,” the S&P 500 “Buyback Index” has climbed 330%, versus a gain of 41% for those companies that have not bought their own stock.
The green line shows the increase in stock values since 2000 of S&P 500 companies that have engaged in buying their own stock, compared to the red line showing those S&P 500 companies that have not.
Since 2000, generally heralded as the start of the “era of financial engineering,” the S&P 500 “Buyback Index” has climbed 330%, versus a gain of 41% for those companies that have not bought their own stock.
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