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Continued: Panic or pause? The instinct is to sell with everyone else. But there is a good case for calm

  • Article by: BERNARD CONDON , AP Business Writer
  • Last update: June 20, 2013 - 11:15 PM

Skeptics say buybacks show companies don't have anything better to do with their money, a bad sign for future profits. Stock bulls say it shows that the people who know their companies better than anyone else — corporate executives — think their stocks are a bargain, and so should you.

Whoever is right, buybacks are likely to continue because companies have plenty of firepower. Companies in the S&P 500 have $1 trillion of cash, according to S&P Dow Jones. The cash hoard has never been higher.

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