In thinking of potential tailwinds into 2021, one that comes to mind is the re-initiation of corporate buybacks. The reinstatement of buyback plans is a theme worth noting, as indicated by several management teams during the 3Q earnings season. Management team sentiment ranged from already having resumed during 3Q (WMT) or expecting to recommence in 4Q (Baxter International (BAX) to expecting a reinstatement as they “gain comfort that the recovery is more sustained” (EL), stating that they “will not initiate repurchases until [they] have better visibility into the shape and timing of a recovery” (BKNG) or waiting “until the Fed allows share repurchases again” (AXP)

Chart: US and non-US share buyback, the crash that was; only upside from here