Followers | 689 |
Posts | 143817 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
Thursday, April 16, 2020 12:56:38 PM
By: MarketWatch | April 16, 2020
The rally in markets has come too far, too fast, leaving risks tilted to the downside despite the huge fiscal and monetary support provided to cushion the world economy, according to a strategist at Goldman Sachs.
“Our view is that the risk in the short term is still on the downside. And I think the rally that we’ve seen, which in many markets has been 25% or so from the low is probably too rapid given the near term prospects that we see for the economic and profit data,” said Peter Oppenheimer, chief global equity strategist at Goldman Sachs, during a presentation for U.K.-based reporters.
The S&P 500 SPX, -0.36%, through Wednesday, has climbed 24% from its March 23 low.
He wasn’t entirely pessimistic. As infection rates slow, it gives investors more confidence that the duration of this downturn is going to be somewhat limited, he said.
The Federal Reserve’s extension of bond buying to include corporate debt, and the European Central Bank’s widening of collateral criteria, also is supportive, as is the ramping up of fiscal policy.
“Whether it’s enough remains to be seen, but the scale and scope of these programs is fairly unprecedented,” he said.
Silvia Ardagna, managing director of the bank’s investment strategy group, said the ECB’s bond buying efforts should be able to cover the estimated spending by eurozone countries. “But if government debt were to increase by more, because more support to the economy was needed, then we think a scale-up of the program could certainly take place,” she said.
Andrew Wilson, chairman, global fixed income at Goldman Sachs Asset Management, said at some point investors will focus on the amount of debt that has been issued and just how much will need to be repaid.
“Some of the themes that we think could really play out here around central banks tolerating higher inflation because of course, one way to get out of the terrible debt burden that countries would have is to allow higher inflation,” he said.
There will be a risk to longer-dated bonds “as we get much further through this process, depending on how inflation sets up.”
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent GS News
- Intel Secures $3.5 Billion Subsidy, Stellantis Backs EU Emissions Targets, BP and Apollo Reach $1 Billion Deal • IH Market News • 09/16/2024 10:03:27 AM
- OpenAI Unveils Strawberry AI Model Series; Boeing Stock Falls 4% Amid Strike; HR Surges 20% on Growth Forecast • IH Market News • 09/13/2024 10:12:55 AM
- Norfolk Southern CEO Fired, Ryanair Lowers Fare Forecast, 23andMe Considers Acquisition Proposals • IH Market News • 09/12/2024 10:02:29 AM
- GameStop plunges 11% on stock offering, DJT drops post-debate, GSK fails shingles vaccine trial • IH Market News • 09/11/2024 10:25:41 AM
- Goldman Sachs Custody Solutions and NewEdge Capital Group Announce Strategic Collaboration to Provide Enhanced Services to RIAs • GlobeNewswire Inc. • 09/10/2024 01:00:00 PM
- Apple Loses EU Dispute; Google’s $2.7 Billion Fine Upheld; Oracle Shares Surge 9% • IH Market News • 09/10/2024 10:02:31 AM
- Dell, Palantir, and Erie Will Be Added to the S&P 500; Boeing Avoids Strike; Apple Event Takes Place Today • IH Market News • 09/09/2024 10:05:35 AM
- Broadcom Down 10% Post-Earnings, UiPath Up 8%; Qualcomm Eyes Intel Assets; Salesforce Acquires Own Company • IH Market News • 09/06/2024 11:59:00 AM
- Qualcomm Develops Mixed Reality Glasses; Verizon to Boost Dividend, Eyes Acquisition; Samsonite Plans US Dual Listing • IH Market News • 09/05/2024 10:11:35 AM
- Nvidia Subpoenaed by DOJ, Athira Pharma Shares Plunge 71% After Study Fails, Zscaler Falls 15% Post-Earnings • IH Market News • 09/04/2024 09:50:25 AM
- Apple Names New CFO, Sony Hikes PS5 Price in Japan, Santander Launches Share Buyback • IH Market News • 08/27/2024 09:35:22 AM
- Berkshire Reduces Stake in BofA, Hawaiian Airlines Soars 10%, Paramount Receives $4.3B Offer, and More • IH Market News • 08/20/2024 09:56:02 AM
- FuboTV Soars 12% After Venu Sports Block, Goldman Sachs Lowers U.S. Recession Odds, BHP Ends Chile Strike • IH Market News • 08/19/2024 09:28:19 AM
- Bitcoin Fall Hits Other Tokens, MicroStrategy Launches Leveraged ETF, Mintzberg Takes Over Grayscale Leadership • IH Market News • 08/15/2024 07:35:02 PM
- Google Mandated to Modify Play Store, Apple Innovates, Victoria’s Secret Hires CEO, Mars Buys Kellanova • IH Market News • 08/15/2024 10:05:46 AM
- Google Forced to Modify Play Store, Apple Innovates, Victoria’s Secret Hires CEO, Mars Buys Kellanova • IH Market News • 08/15/2024 10:05:46 AM
- AI Energy Use Overtakes Bitcoin, BTC Price Falls, Goldman Sachs Puts $418M in Bitcoin ETFs, and Latest in Crypto • IH Market News • 08/14/2024 07:26:36 PM
- Dell Stock Slide Offers Opportunities; Trump and Musk hold talks on X; GM Restructures China Operations, and More • IH Market News • 08/13/2024 09:43:49 AM
- US Index Futures Rise Amid Earnings Season Optimism, Oil Prices Rebound • IH Market News • 08/07/2024 09:49:12 AM
- Joby Aviation Seeks Australian Certification, Arcadium Lithium Projects Suspended Due to Oversupply, and More • IH Market News • 08/07/2024 09:47:32 AM
- Goldman Sachs Alternatives Makes $440 Million Strategic Investment in BrightNight to Fund Continued Growth • PR Newswire (US) • 08/01/2024 11:00:00 AM
- Virtú Investments Acquires Iconic Skyglass Tower in Downtown Seattle • GlobeNewswire Inc. • 08/01/2024 01:00:29 AM
- Upbeat Earnings News May Spark Early Rally On Wall Street • IH Market News • 07/31/2024 01:07:54 PM
- ASML Rises 7% on Export Waiver; Intel Plans Layoffs, HSBC $3B Buyback Announced, and More • IH Market News • 07/31/2024 09:55:50 AM
- osapiens raises $120 million funding round led by Growth Equity at Goldman Sachs Alternatives • Business Wire • 07/29/2024 12:00:00 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM