End to $1 Trillion Buyback Binge May Help ‘Uniquely Hated’ Asset
- U.S. stocks to lose buyback support over 12 months: Bernstein
- Europe stock outflows have undone post-2012 Draghi inflows
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No other asset globally is as hated as European equities. But, according to Sanford C. Bernstein strategists, the region’s stocks have one big advantage that could attract U.S. investors.
Over the next 12 months, U.S. stocks will lose the major support they get from buybacks as a deterioration in the quality of corporate debt and slowing economic growth put an end to a share-repurchase bonanza that reached $1 trillion in 2018, according to Bernstein. That’s where unloved European stocks enter the picture, with their low dependence on buybacks.