And The Biggest ‘Source Of Equity Demand In Recent Years’, According To Goldman Sachs, Is …

What could possibly go wrong?

And The Biggest “Source Of Equity Demand In Recent Years”, According To Goldman Sachs, Is…

Spoiler alert: it’s not the Fed, even though the portfolio rebalancing channel courtesy of a $4.5 trillion Fed balance sheet certainly assured that the artificially inflated bubble in stocks, as a result of the Fed’s own purchases of bonds, is unlike anything seen before (and to all those debating whether the bubble is in bonds or stocks, here is the answer: it is in both). The answer, according to Goldman’s David Kostin is the following: From a strategic perspective, buybacks have been the largest source of overall US equity demand in recent years.”

But who needs growth when the Chief Executives of America’s largest corporations are about to trickle down their record, stock-buybacks driven bonuses for yet another year.

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