Goldman Sachs believes the rally has peaked! ! !
Recent frenzied buying stocks institutions, retail is crazy to sell, in fact now is uncertainty, the largest ever such as Russia and Ukraine don't know when to end of the war, the biggest in the 40 years of inflation, most times the federal reserve to raise interest rates and shrink the table this year, the European and American countries due to high inflation resistance to street protests, but Wall Street institutions is crazy to buy stocks, the scale is very large. It's a lot like buying at the beginning of a bull market. The US institutions are crazy.
"The continuing argument about the interaction between the Fed and the stock market is that if we don't see inflation peaking, we don't see the fed's hawkish intentions peaking. Even if inflation does peak, it is a long way from achieving the central bank's inflation target, meaning stock traders are likely to fight the Fed for much longer.
It may feel like a long time until the FOMC announces monetary policy in May and April. Goldman sachs expects the Fed to begin shrinking its balance sheet with a 50 basis point rate hike in May, another 50 basis point hike in June, 25 basis point hikes at each of the remaining four meetings this year, followed by three 25 basis point quarterly hikes in 2023 to 3.0-3.25% by September 23 next year."
Tony Pasquariello, head of hedge fund sales at Goldman Sachs, called the recent rally unsustainable and called it a standard "short-selling rally in a bear market," and predicted that stocks would continue to fall in coming weeks.
"The continuing argument about the interaction between the Fed and the stock market is that if we don't see inflation peaking, we don't see the fed's hawkish intentions peaking. Even if inflation does peak, it is a long way from achieving the central bank's inflation target, meaning stock traders are likely to fight the Fed for much longer.
It may feel like a long time until the FOMC announces monetary policy in May and April. Goldman sachs expects the Fed to begin shrinking its balance sheet with a 50 basis point rate hike in May, another 50 basis point hike in June, 25 basis point hikes at each of the remaining four meetings this year, followed by three 25 basis point quarterly hikes in 2023 to 3.0-3.25% by September 23 next year."
Tony Pasquariello, head of hedge fund sales at Goldman Sachs, called the recent rally unsustainable and called it a standard "short-selling rally in a bear market," and predicted that stocks would continue to fall in coming weeks.
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