CHART OF THE DAY: Why Stocks Keep Rallying Despite All Of The Bad News

Economic data has been signaling the onset of another spring slowdown.  And earnings announcements have been more disappointing than usual.

Meanwhile, stock market valuations based on expected earnings are at record-highs.

Yet the stock market continues to show remarkable resilience as it sit near its all-time high.

Stock market guru Ed Yardeni advances his thoughts.

“[D]uring the current earnings season, US corporations continue to announce dividend increases and more share buybacks,” he said on his blog. “Previously, I’ve shown that this corporate cash flow into the stock market–which totaled $2.1 trillion for the S&P 500 since stock prices bottomed during Q1-2009 through Q4-2012–has been driving the bull market since it began.”

“On Tuesday, Apple announced that it will more than double its program to return cash to shareholders through stock buybacks and a higher dividend, spending $100 billion on the effort through the end of 2015. Its share repurchases alone will increase to $60 billion from the $10 billion it committed previously, the largest such plan in history.”

From Yardeni:

Dr. Ed’s Blog

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