Awash in cash thanks in part to the tax cuts passed in December, U.S. companies will inject more than $2 trillion into the U.S. economy this year through buybacks, dividends and mergers and acquisitions, according to data from UBS investment strategist Keith Parker cited by CNBC.
Assuming current trends hold, UBS expects to see $700 billion to $800 billion in share buybacks in 2018. Dividends could top $500 billion, while the value of M&A deals could hit $1.3 trillion.
If the bank’s projections are accurate, the total value of this financial activity will hit roughly $2.5 trillion — or 12.5 percent of GDP, CNBC notes.
