Business

Just hours after Goldman unexpectedly weighed in bearishly on stocks, tactically downgrading global equities to Neutral over the next 12 months "on growth and valuation concerns" adding that "until we see sustained earnings growth, equities do not look attractive, especially on a risk-adjusted basis" in what some see as a potential upward inflection point in the market now that the biggest taxpayer backed hedge fund is buying what its clients have to sell, Goldman decided to unveil another surprise this time upgrading one of the biggest momentum/growth stocks, Tesla, to a buy with a $250 pr

After two violently volatile days in which the market soared (Monday) then promptly retraced all gains (Tuesday), the overnight session has been relatively calm with futures and oil both unchanged even as the BBG dollar index rose to the highest level since April 4. This took place despite a substantial amount of macro data from both Japan, where the GDP came well above the expected 0.3%, instead printing 1.7% annualized, which pushed stocks lower as it meant the probability of more BOJ interventions or a delay of the sales tax hike both dropped.

By EconMatters

It is obvious that the unintended consequences of ZIRP have destroyed financial market structure which ultimately flows through to the broader economy.

Submitted by Michael Snyder via The Economic Collapse blog,

You are about to see a chart that is undeniable evidence that we have already entered a major economic slowdown. 

Having pointed out the gathering storm in VIX ETPs, raised concerns of a "reasonably high probability" of a large drop in stocks, and explained how complacently short-term risk is being priced, Goldman's portfolio strategy team have unleashed a dramatic warning. Shifting to an oveweight cash position for the next 3 months, Goldman warns "we downgrade equities to Neutral over 12 months on growth and valuation concerns. Until we see sustained earnings growth, equities do not look attractive, especially on a risk-adjusted basis."