With Everyone Selling Stocks, Who Is Buying? Goldman Explains

Friday, April 15, 2016
By Paul Martin

by Tyler Durden

There has been some confusion in recent weeks about one unexplained aspect of the rising market: just who is buying?

The reason for the confusion is not only the previously documented buyer strike by the smart money (hedge funds, institutions and private clients), which as we reported a few days have sold stocks for 11 consecutive weeks.

Then last night, citing the latest EPFR data, BofA reported that retail equity investors are now also “risk-off” following $6.2 billion in equity outflows from all regions.

So retail is selling, insiders are selling… who is buying?

Here is the answer courtesy of Goldman’s David Kostin:

Corporations purchased $561 billion of US equities during 2015, 40% higher than during 2014 ($401 billion) and the second highest level since at least 1952 ($721 billion in 2007). Managements remained committed to share repurchases (net of issuance) last year amidst modest US GDP growth of 2.4% and extended valuations. Outside of the Great Recession, corporates have been the primary source of US equity demand.

The Rest…HERE

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