US firms are buying back their own stocks at a much higher rate than last year. After the corporate tax rate was slashed from 35% to 21%, American companies decided to put their cash hoardings to use by buying back stocks.

S&P estimates US firms are expected to spend $650 billion on share buybacks this year.

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Chart Source: Barron’s

Source: Share buybacks are soaring – is this a sign of market turmoil ahead?, Money Observer