Households and corporations will buy an additional $500 billion of U.S. stocks through the year-end, even as equities trade near record highs, according to Goldman Sachs Group Inc.
The splurge is set to happen amid a record $5.5 trillion of cash that’s sitting idle, having swollen through the pandemic, Goldman strategists led by David J. Kostin wrote in a note. They expect corporations to be the biggest source of equity demand for the rest of 2021, with buybacks set to accelerate and issuance poised to slow from peak first-quarter levels.
