How much can buybacks rise on the tax cuts? President Donald Trump's Christmas present to U.S. equity investors will be a big one, if history is any guide. Share repurchases may jump by more than 70 percent on an annualized basis to $875 billion amid a tax overhaul that encourages the repatriation of profits held abroad, according to an analysis by Bloomberg Intelligence. At least, that was the magnitude of growth in completed buybacks in 2004-2005, the last time U.S. companies were granted a tax repatriation holiday.(InvestmentNews)
A couple of the firms have some some analysis of their estimates. They assume both special dividends and buybacks. The other huge uncertainty was how much will be repatriated ? Will some firms continue to leave money overseas or will that be too politically unpopular ?