News

JPMorgan Chase strategists indicate that the scale of stock buybacks in the United States may increase by another $600 billion in the coming years. Previously, it was estimated that the scale of stock buybacks in the U.S. would reach a historic record of $1.5 trillion by 2025, and the new scale will further rise. The team of strategists, including Nikolaos Panigirtzoglou, believes there is still room for growth in stock buybacks, which are expected to reach 3% to 4% of the total market capitalization, returning to pre-COVID-19 levels. The team wrote in their report: "The strong support for the stock market from U.S. stock buybacks this year may become even stronger in the coming years." They added that the record scale of stock buybacks, combined with sluggish initial public offering (IPO) activity, has resulted in negative stock supply for the fourth consecutive year, a phenomenon that is "unprecedented."