Shuli Ren, Columnist

Goldman and China Agree on How to Aid Tired Bulls

Buybacks are the answer, especially if you're an iron chicken.

February 21, 2018 at 5:59 AM UTC

Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. A former investment banker, she was a markets reporter for Barron’s. She is a CFA charterholder.

Hen portrait (Gallus gallus domesticus), Point of Lay Pullets, Amersham, Raans Farm , UK — Ben Queenborough/via Getty Images

Provide news feedback or report an error

Site feedback:

Take our Survey

This article is for subscribers only.

China and Goldman Sachs Group Inc. are betting on the same thing: Cash rewards can save tired bulls.

In an 82-page report, "Where to Invest Now," the firm's U.S. equity strategy team pointed out that this month's correction coincided with an earnings blackout, meaning companies weren't announcing stock buybacks. As the year hums along, expect more repurchases. In fact, Goldman sees corporations as the largest source of U.S. equity demand, taking a record $590 billion of stock out of circulation this year -- more than ETF inflows and foreign portfolio investment combined.