Buybacks To Remain The Largest Demand Source For US Equities: GS

With the U.S. economy expected to grow at a modest 2% pace and cash balances at high levels, corporations are expected to purchase $450 billion of US equities in 2016, Goldman Sachs analysts estimate. David J. Kostin and team said in their April 14 research note titled “Analyzing and forecasting the sources of demand for US equities” that they don’t anticipate any major shift in allocations from stocks to bonds.

Corporate demand for US equities: second highest level since 1952

After analyzing the Financial Accounts of the United States’ report, earlier known as the Flow of Funds Accounts, the Goldman Sachs analysts point out that corporations purchased $561 billion of US equities in 2015, which is 40% higher than during 2014 and the second highest level since...