Markets stocks

Analysts Stirred, But Not Shaken, By ‘Warp Speed’ Correction

In the midst of rampant uncertainty, Goldman's cross-asset strategy team this week upgraded equities to Overweight on a three-month horizon, a somewhat bold decision considering the event risk captured by that timeframe. Then again, stocks just staged one of the most ferocious rallies in history in the face of what, at least for a couple of months, was the closest thing to an outright depression the world had seen in a century. Additionally, Goldman's call contained quite a bit of nuance. It wasn't a pedal-to-the-metal bull call, and besides, there is an argument to be made that if the US election manages to go some semblance of "smoothly" and a safe, effective vaccine comes to market, you'd have a setup for a pro-cyclical surge. (Those are some pretty big "ifs", though.) Read more: Goldman Upgrades Stocks Despite Uncertainty. Also Likes Cash (You Know, Just In Case) When it comes to US equities specifically, the bank's David Kostin calls what happened over the past several sessions a "warp speed correction on the road to 3,600". The allusions are to The White House's cartoonishly-named vaccine program and to the bank's recently adopted year-end target for the S&P, respect
Subscribe or log in to read the rest of this content.

2 comments on “Analysts Stirred, But Not Shaken, By ‘Warp Speed’ Correction

  1. D Price says:

    The Social Dilemma (Netflix) does a good job explaining how social media is addictive. So rather than think social media (FAANG) are overvalued, it seems that as an addictive product produced at almost zero cost it is undervalued. I would question after watching this whether regulations can be developed to reduce the addiction as innovation is infinite.

    • A Pi says:

      Not just that but also the fact that if FAANMG are make up large % of earnings of Global GDP you can expect the taxation on tech to become more prominent around the world… as well as regulation.

Speak your mind

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Skip to toolbar