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Share repurchases can play a role in boosting stock prices—but a freeze is coming
After the financial crisis, investors sought higher returns in risky emerging markets. Today, the money is flowing back to the U.S. What went wrong for countries such as Argentina and Turkey, and could it get worse? Photo composite: Crystal Tai/iStock
A steady stream of robust earnings and economic data has virtually zapped volatility from U.S. stocks, but a coming freeze on share buybacks could challenge the market.
Companies typically don’t repurchase their own shares in the month before reporting quarterly results because of regulations, and with the third quarter coming to an end, 86% of the S&P 500 will be temporarily restricted by Oct. 5, according to Goldman Sachs analysts led by David Kostin.