Companies, the biggest source of demand for stocks in recent years, are likely to sharply cut back their purchases for years to come, preventing equities from reaching pre-coronavirus crisis valuations, according to Sanford C. Bernstein.

Diminished revenues, reduced capacity to issue high-yield debt for the purpose of buying stock and government curbs on companies taking public aid will all cause buybacks to shrink, according to the research firm and wealth manager. Buybacks could even become “socially unacceptable,” though the firm judged it too early to make a forecast on that count.

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