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Macro US Stocks

Goldman Sachs: $1.7T Buyback Wave to Absorb Surging Equity Supply

Goldman Sachs expects US companies to return a record $1.7 trillion to shareholders through stock buybacks by 2027, cushioning equity supply that is set to rise sharply next year. The bank said buybacks, together with strong demand from households and foreign investors, should be enough to absorb the new shares and shield market valuations from dilution near record highs.

Original source

AI take

The structural point here is that buybacks are being framed as the offset to rising equity supply, not as a standalone bullish signal — the two forces are being netted against each other. That matters for how the market prices dilution risk, since the cushion depends on both corporate cash deployment and continued household and foreign demand holding up together. Whether buybacks actually scale as projected, and whether demand from those buyer cohorts persists, is the open question.

Generated by AI for reference only.

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