While we already know that there is only one true irrationally non-economic buyer of stocks in the US equity market, getting confirmation from none other than Goldman Sachs is another matter...
- GS: "BUYBACKS yday accounted for 17% of our total flow, at times 33%"
Sourced from a run, this explains the machine-like vertical buying panic of the completely indiscriminate "well stocks are down and we need to maintain our bonuses) corporate buyback machine.
And as a reminder, expect much more of this: as Goldman forecast (and hopes to pocket commissions on) two weeks ago, of the $220 billion in net inflows into equities, $450 billion, the most ever, will be due to stock buybacks, even as households and pension funds both sell to corporate CFOs, whose only interest is to boost their equity-linked compensation.
Courtesy of @BergenCapital