US stock buybacks jump 15% in 2025, according to Goldman Sachs.Here's what it means for markets

Corporate Buybacks & Market Confidence - US corporate buybacks have reached approximately $12 trillion (12,000 billion) so far this year, a 15% increase compared to the same period last year [1] - The increase in buyback authorizations and buybacks suggests potential nervousness in the market earlier in the year, with companies believing their shares are undervalued [2][4] - Corporate America seems relatively confident, as mentions of "economic slowdown" on conference calls have decreased [4] Economic Indicators & Consumer Behavior - The service sector, representing 85-90% of GDP, shows a rebound in new orders and increased activity, indicating improved corporate sentiment [5] - The consumer market is bifurcated, with the lower-end consumer facing challenges [5][6] - The recommendation is to avoid areas of the market heavily leveraged to the lower-end consumer [7] Investment Strategies & Sector Focus - The AI trade remains a key focus, driven by expected earnings growth in the information sector [7][8] - Companies are seeking ways to stretch disposable spending dollars, benefiting retailers like Walmart, Costco, TJX, and Ross Stores [8][9] - AI is expected to become pervasive across various industries, similar to the internet [11] - The public safety sector is also attractive, even with some AI influence [13] - The key is to focus on where money is being spent and which companies are poised to deliver faster earnings growth than the S&P 500, which is expected to be north of 13% next year [13]