What you are looking at here is perhaps the most unasked question about the Stock Market, from our quiet perch of objective data. While the crowds of experts constantly debate countless ways to measure demand for stocks, we would humbly point to some simpler math. The supply of shares to bid on at all has been shrinking.
Since my investment career began in 1996, the total number of U.S. listed companies to bid on in the public markets has been cut in half. Since we have good data on buybacks from just one group of stocks, the S&P 500, an additional $10 trillion worth of shares have been taken out of the market from buybacks.
Too many opinions swirl daily about supply and demand for business products and services for companies and the economy. Our picture page this month shares an uncrowded question we work on across our portfolios – what about the supply of shares of stock?
If you do not like interrupting predictions of doom at dinner parties by asking nerdy quantitative data questions – like do you know how many shares of stock you’re talking about?!...alternatively you can just keep this bonus picture page on your coffee table to better explain:
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