What's The Big Idea?: Goldman Ponders a World Without Buybacks

The video discusses the potential impact of a US Senate proposal to ban share buybacks by US-listed companies. Goldman Sachs' chief strategist, David Kostin, highlights the significant role buybacks have played in supporting market valuations and suggests that their absence could lead to lower EPS figures, increased market volatility, and more varied returns. Kostin's analysis of blackout periods, when companies are unable to buy back shares, shows typically lower returns in the S&P 500, indicating the stabilizing effect buybacks have had on the market.

What does Kostin suggest about market volatility during blackout periods for buybacks?

According to Kostin's analysis, how do returns in the S&P 500 during blackout periods compare to non-blackout periods?