Booming Buybacks No Magic Bullet for This U.S. Equity Tantrum
- Goldman Sachs repurchase desk say most orders ever last week
- Bull market pillar intact but not enough to thwart correction
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Last week’s histrionics in U.S. equities occurred as one thing remained constant: plentiful share buybacks. For bulls, that’s good and bad news.
Evidence that buybacks held up comes from Goldman Sachs Group Inc.’s corporate agency desk, which received record orders from clients for repurchases in the five days ended Friday, according to a note obtained by Bloomberg. The stretch includes two days in which the Standard & Poor’s 500 Index slid more than 1 percent and two in which it climbed more than 2 percent.