Corporations have been booking some nice profits of late. But much of those profits are going to buttress shares prices in stock buyback programs or hike dividend payouts or both.
But there another well-known activity inflated equity prices can be used for, merger and acquisitions. Low interest rates also make many deals easier. And from the look of the landscape their on the rise. http://soberlook.com
First quarter activity is the best since 2011. Nor is this corporate activity limited to the U.S. Here's how a piece in the Financial Times described it: "A pick-up in merger activity helped Europe’s main equities markets kick off the second quarter with gains."
For more here's another link.
http://www.mergermarket.com/pdf/MergermarketTrendReport.Q12014.Global-
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