U.S. companies' stock purchases via buybacks, M&A to hit 6-year high in 2024, Goldman says

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'A surge in share buybacks and continued growth in cash mergers and acquisitions (M&A) will be the primary drivers of corporate equity demand,' Cormac...

- U.S. companies' purchases of domestic equities through more stock buybacks and corporate acquisitions will hit a six-year high of $625 billion this year, about as much as mutual funds and pension houses will offload, Goldman Sachs said.

The outflows in mutual funds will come as investors flock to passive index funds and exchange-traded funds , from actively managed ones, while pension funds will rotate capital towards lower-risk assets such as bonds, Conners said. Besides corporates themselves, U.S. households will be the other group who will be net buyers of domestic stocks -- worth $100 billion -- this year, reversing course from being net sellers in 2023, the brokerage said.

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