Why stocks keep going up even as the economy softens

[markodochartaigh]

4. And companies channeling profits into stock buybacks

instead of developing their productive capacity also increases stock prices. Fewer shares of a company mean that the shares are worth more if other variables stay the same. And the c-suite cares about stock valuation because much of their compensation is in the form of stock. And, of course, those who are paid in stock have various maneuvers to decrease or avoid taxation, unlike workers who are paid in dollars.