Will Record Issuance Be A Headwind For US Stocks

Despite record-level equity issuance in the US, UBS does not view this as a threat to stock performance. Market supply is offset by strong share buybacks, and analysts continue to recommend an attractive rating on US equities.

Key Takeaways

• 1.Record US equity issuance is expected this year, but it is manageable relative to market size and offset by buybacks.
• 2.UBS remains attractive on US equities, driven by earnings growth and AI-related capital expenditure.

Table of Contents

• Equity issuance in the US has picked up after a long quiet period.
• But record dollar issuance should not be a headwind for equity markets.
• We continue to view US stocks as Attractive, with recent strength providing an opportunity to improve resilience.
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