A shrinking supply of stock might be helping to prop up the market.
Stocks continue to surge despite slower growth in earnings and the economy--and one of the main reasons might be tied to the dwindling supply of stock amid higher demand, reports CNBC’s Steve Liesman.
“Surging global liquidity has led to two trends: share buybacks and private equity deals, both of which result in less stock available to the market,” Liesman said. “With a surge of demand for stocks raising values, stocks seem able to prosper even while earnings growth eases. It could be as simple as supply and demand.”