A 14-year trend that's been driving the stock market takes a sharp turn
This reversal could become a significant drag on the stock market in the years ahead
One of the biggest drivers of the stock market's historic boom over the past 14 years has been so-called "buybacks." This is where a company buys back its outstanding shares, pushing up its stock price.
These deals can reach dizzying proportions over time. Apple, for example, has spent a whopping $625 billion buying back its shares over the past decade.
Now, that trend is beginning to slow down.
From an all-time high of $1.3 trillion in total share buybacks last year, the pace has fallen by more than at any time except during the Covid Crisis in 2020 and the Great Recession.