U.S. share buybacks could increase by $600 billion over the coming years, according to strategists at JPMorgan Chase & Co.
According to JPMorgan, global corporate share buybacks are on pace to reach a record $1.9 trillion in 2025, with buyback activity already matching last year’s total of $1.37 trillion in just the first eight months of this year.
The financial institution said the current pace implies 38% annual growth compared to the same period last year, outpacing the 15% rise in equity prices and indicating a substantial increase in buyback volumes.
The team of strategists, including Nikolaos Panigirtzoglou, believe there is still room for growth in stock buyback volumes, which could reach 3% to 4% of the total market capitalization, a level that would align with pre-pandemic figures, potentially adding another $600 billion on top of the current record $1.5 trillion annual pace.