--- title: "Fireside Charts: $1 Trillion Returned to U.S. After Tax Cuts, Buybacks Set Record, and USD Breaks Through Support" description: Market highlights in charts - U.S. companies repatriated $1 trillion+ following 2017 tax cuts, but the bulk went to share buybacks and the USD is weakening image: https://1782947.hs-sites.com/hubfs/1.8%20Chart%201.png --- - [Login](http://investbcm.com/wp-login.php) - [Register](http://etf.investbcm.com/register) [![Beaumont_Logo_4C - powered by AIM](https://1782947.hs-sites.com/hs-fs/hubfs/Beaumont_Logo_4C%20-%20powered%20by%20AIM.png?width=429&height=254&name=Beaumont_Logo_4C%20-%20powered%20by%20AIM.png)](http://investbcm.com/) **A Bird's Eye View Blog** # Fireside Charts: $1 Trillion Returned to U.S. After Tax Cuts, Buybacks Set Record, and USD Breaks Through Support By:[BCM Investment Team](http://1782947.hs-sites.com/author/bcm-investment-team) | Date:Jan08, 2020 | [Category:](http://1782947.hs-sites.com) [Equity](http://1782947.hs-sites.com/topic/equity), [Economics](http://1782947.hs-sites.com/topic/economics), [Market Highlights](http://1782947.hs-sites.com/topic/market-highlights), [Fireside Charts](http://1782947.hs-sites.com/topic/fireside-charts) U.S. companies have repatriated more than $1 trillion from foreign subsidiaries to their U.S. parents since 2017—more specifically, since the passing of the Tax Cuts and Jobs Act (TCJA). Unemployment has since seen record lows and consumer spending remains strong, despite ongoing weakness in manufacturing and trade. But companies quickly [set another record ](https://www.cnbc.com/2019/03/25/share-buybacks-soar-to-a-record-topping-800-billion-bigger-than-a-facebook-or-exxon-mobil.html)with the additional funds. Do we owe them a "thank you" for reinvesting in American innovation and hiring, or did shareholders and company executives, and the companies themselves, reap most of the benefits? Either way, we may need to prepare for the dollar's buying power to decrease after it recently broke through its multi-year downside support levels. Could that make it difficult for consumers to sustain current spending levels, kneecapping U.S. GDP, or will it benefit multinational corporations, further boosting share prices—especially for the top five stocks making up 18% of the S&P 500? We'll be keeping our eyes on the trend to find out.   1. Cause...   ![dividend transfers to U.S.](https://1782947.hs-sites.com/hubfs/1.8%20Chart%201.png) Source: WSJ Daily Shot, from 1/7/20     2. ...and effect...   ![S&P 500 share buybacks](https://1782947.hs-sites.com/hubfs/1.8%20Chart%202.png) Source: WSJ Daily Shot, from 1/7/20     3. There appears to be some momentum behind a weaker U.S. Dollar. Will this continue?   ![USD/CAD](https://1782947.hs-sites.com/hs-fs/hubfs/1.8%20Chart%203.png?width=554&name=1.8%20Chart%203.png) Source: WSJ Daily Shot, from 1/7/20     4. How long can the U.S. consumer keep spending?   ![consumer spending U.S. gdp](https://1782947.hs-sites.com/hs-fs/hubfs/12.30%20Consumer%20spending%20drive%20GDP.png?width=571&name=12.30%20Consumer%20spending%20drive%20GDP.png) Source: WSJ Daily Shot, from 12/30/19     5. ...Because U.S. manufacturing will need time to recover from the trade wars...   ![richmond fed manufacturing index](https://1782947.hs-sites.com/hubfs/12.30%20Richmond%20Fed.png)   ![Kansas city fed manufacturing index](https://1782947.hs-sites.com/hubfs/12.30%20Kansas%20City%20Fed.png) Source: WSJ Daily Shot, from 12/30/19     6. Not exactly a shock:   ![S&P 500 market cap](https://1782947.hs-sites.com/hubfs/12.30%20Market%20Cap%20SP%20500.png) Source: WSJ Daily Shot, from 12/30/19             Are you following us here and not on LinkedIn? 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