Investing For Buybacks: 2014 Is Right Place, Right Time

One of the strategies recommended for 2014 by Goldman Sachs Group Inc (NYSE:GS) is to invest in companies that could deliver returns through hefty buybacks. Taken along with a dividend payout, investors could do well for themselves by investing in these companies, considering that the market is already trading at record highs.

S&P 500 buybacks spending

“We expect S&P 500 (INDEXSP:.INX) share repurchase spending will leap by 35% to nearly $600 billion in 2014. Investors will reward firms that return cash to shareholders. In a fairly valued market, strategies that are not dependent on further P/E multiple expansion become more important,” say Goldman Sachs strategists David J. Kostin, Stuart Kaiser, Amanda Sneider, Ben Snider, Rima Reddy and Aaron Woodside...