Buyback Comeback
When it comes to equity demand, there's no bid quite like the corporate bid.
Buybacks can cushion drawdowns, but happily, corporates aren't known for being particularly adept at market timing, so they'll buy at elevated levels too.
In 2022, corporates will be the largest source of net US equity demand, according to Goldman's forecasts (figure below).
Over the weekend, I talked about household and other "end-user" demand. That's the more compelling, headline-friendly story, but there's some
So, is this correct…? Buybacks increase existing shareholders’ equity(the opposite of dilution) but at the same time also enhance “demand” for the stock (driving the stock price up or at least buoying it) giving the appearance that the stock is doing well regardless of whether earnings are slowing?