Burry of The Big Short said the biggest source of demand in the US stock market is disappearing.


US stock net issuance has turned positive again for the first time since 2021. This means the number of shares companies are currently putting into the market through issuing new stock has already exceeded the number of shares that have been bought back and retired.
For most of the past 20 years, share buybacks have been quietly reducing the total supply of shares in the market. Even if corporate profits have not grown in step, the contraction in stock supply itself provides support for stock prices.
The last time US stock net issuance turned positive was in 2021, after which the market crash of 2022 followed.
Over the past 20 years, share buybacks have been one of the most important sources of demand in US stocks. Now, this demand is fading away.
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