Monday, October 24, 2016

Merger Monday

Stocks may or may not be overvalued but that isn't stopping companies from announcing huge deals over the weekend.  At least five major mergers were announced over the weekend including AT&T's $85 billion deal for Time Warner. This tops off an already record October.  According to Business,  "To date, October has seen $279 billion in announced M&A involving US companies, according to Bloomberg — the highest since July 2015, when we saw $337 billion in announced deals. That excludes deals that have since been scrapped, like $160 billion Pfizer-Allergan merger, which was announced in November 2015 and later blocked by regulators.  According to S&P Global Market Intelligence, October 2016 currently stands at the third-strongest month ever for US M&A announced deal value."

Look I'm not saying that investors always get mergers right but I do know that they generally want to buy things, whether it be companies or stocks, when they perceive value.  It should come as no surprise that markets are higher this morning.

Link:  Business  "Merger Monday."

*AT&T and Time Warner are components of * ETFs held  in client and personal accounts.  Please note these positions can change at any time without notice on this blog or in other printed or electronic media.