There's only one buyer keeping S&P 500's bull market alive

New York

DEMAND for US shares among companies and individuals is diverging at a rate that may be without precedent, another sign of how crucial buybacks are in propping up the bull market as it enters its eighth year.

Standard & Poor's 500 Index constituents are poised to repurchase as much as US$165 billion of stock this quarter, approaching a record reached in 2007. The buying contrasts with rampant selling by clients of mutual and exchange-traded funds, who after pulling US$40 billion since January are on pace for one of the biggest quarterly withdrawals ever.