Followers | 686 |
Posts | 142587 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
![](https://investorshub.advfn.com/uicon/35728.png?cb=1539773763)
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 »»»
![](http://accountaccess.myfedloan.org/static/applications/consumer-authentication/1.1/images/icnUSFlag.gif)
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
- SEC Closes Paxos Investigation, Trump Joins Bitcoin Conference, Ether ETFs Anticipation Soars • IH Market News • 07/11/2024 07:23:29 PM
- U.S. Futures Fall Ahead of CPI Report; Oil Prices Rise on Falling Inventories and Stronger Demand • IH Market News • 07/11/2024 10:21:45 AM
- Microsoft and Apple Exit OpenAI Board, TSMC Exceeds Forecasts with Record Revenue, and Other Key Updates • IH Market News • 07/10/2024 10:42:17 AM
- TAIT announces equity investment from Goldman Sachs Alternatives' Private Equity Business • PR Newswire (US) • 07/09/2024 01:00:00 PM
- TAIT announces equity investment from Goldman Sachs Alternatives' Private Equity Business • PR Newswire (Canada) • 07/09/2024 01:00:00 PM
- Nike Stock Drops 14% in Pre-Market; Nokia Acquires Infinera for $2.3 Billion, and More News • IH Market News • 06/28/2024 10:50:25 AM
- Dow Dips, Nasdaq Gains, Oil Prices Rise • IH Market News • 06/26/2024 11:00:03 AM
- SolarEdge Stock Falls 13%, Wegovy Approved in China, Grail Nasdaq Debut, Apple Rejects Meta Chatbot • IH Market News • 06/25/2024 10:36:11 AM
- Trump Media Resells Stocks and Warrants; KB Home Exceeds Q2 Expectations, and More News • IH Market News • 06/20/2024 10:55:11 AM
- Fisker Files for Bankruptcy, Chegg Stocks Rise on 23% Workforce Reduction, and More • IH Market News • 06/18/2024 11:02:13 AM
- Goldman Sachs Raises S&P 500 Forecast for 2024; Disney Secures Deadpool & Wolverine in Chinese Cinemas, and More • IH Market News • 06/17/2024 10:49:12 AM
- Adobe Soars 15% Pre-Market; Visa and Mastercard Encounter Hurdles in $30 Billion Agreement, and More • IH Market News • 06/14/2024 11:21:47 AM
- iPhone Sales Skyrocket in China, Nvidia Surges in Pre-Market Following xAI Fundraising, and More News • IH Market News • 05/28/2024 11:37:48 AM
- Workday Shares Drop 12%, VF Corp Divests Assets for Cash Boost, and More • IH Market News • 05/24/2024 12:42:24 PM
- OpenAI and News Corp Seal Partnership, DuPont de Nemours Announces Division, and More News • IH Market News • 05/23/2024 11:40:51 AM
- Nvidia Profits Set to Challenge Historic High Market; GE Aerospace Announces New Hires, and More News • IH Market News • 05/22/2024 10:37:09 AM
- Ethereum ETFs Decision Nears, Peter Mintzberg Named New Grayscale CEO, and More Crypto News • IH Market News • 05/20/2024 08:12:13 PM
- Li Auto Stocks Drop Post Earnings; Calhoun Re-elected to Boeing Board, and More News • IH Market News • 05/20/2024 11:03:22 AM
- OpenAI’s Reddit Partnership Boosts Shares by 14%, Microsoft Embraces AMD Chips for AI, and More News • IH Market News • 05/17/2024 11:36:28 AM
- Chubb Stock Soars 9% with Berkshire Acquisition, AST SpaceMobile jumps 37% on AT&T deal, and More News • IH Market News • 05/16/2024 11:27:07 AM
- Walmart Corporate Job Cuts and Office Centralization, GameStop and AMC Surge, and More News • IH Market News • 05/14/2024 11:26:02 AM
- Arm Sets 2025 Target for AI Chip Development, Amazon and Microsoft Commit Billions to French Investments, and More • IH Market News • 05/13/2024 11:16:03 AM
- Meta Platforms Expands AI Ads, Apple Boosts iPhone Shipments, and More Highlights • IH Market News • 05/08/2024 12:27:48 PM
- Tesla’s April Sales Down 18% in China, Amazon’s Multi-Billion Dollar Cloud Expansion in Singapore, and More News • IH Market News • 05/07/2024 11:44:00 AM
- Perficient Stock Soars 52.9% Post-Acquisition; Luminar Declines 10% Amid Workforce Cutbacks, and Other News • IH Market News • 05/06/2024 12:09:00 PM
FEATURED Cannabix Technologies and Omega Laboratories Inc. Provide Positive Developments on Marijuana Breathalyzer Testing • Jul 11, 2024 8:21 AM
ECGI Holdings Enhances Board with Artificial Intelligence (AI) Expert Ahead of Allon Apparel Launch • ECGI • Jul 10, 2024 8:30 AM
Avant Technologies to Meet Unmet Needs in AI Industry While Addressing Sustainability Concerns • AVAI • Jul 10, 2024 8:00 AM
Panther Minerals Inc. Launches Investor Connect AI Chatbot for Enhanced Investor Engagement and Lead Generation • PURR • Jul 9, 2024 9:00 AM
Glidelogic Corp. Becomes TikTok Shop Partner, Opening a New Chapter in E-commerce Services • GDLG • Jul 5, 2024 7:09 AM
Freedom Holdings Corporate Update; Announces Management Has Signed Letter of Intent • FHLD • Jul 3, 2024 9:00 AM