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Six Reasons Why Goldman Is Suddenly Warning About A "Large Drop" In The Market

Six Reasons Why Goldman Is Suddenly Warning About A "Large Drop" In The Market

After recent (and in some cases very dramatic) bearish conversions by the likes of JPM, BofA, Citi and UBS, the only bank that steadfastly held a bullish view on stocks during the recent market squeeze higher was Goldman Sachs.

Not any more.

On Thursday, Goldman strategist David Kostin appeared on CNBC, where he too join the bearish crowd and said that based on the threat of margin collapse ("35 out of 53 tech companies had margin declines") and record-high stock valuations this year, it's time to play defense in "a tough market."

China Warns US: "Don't Disturb" Hong Kong Social Order; Threatens "Bad Reaction"

China Warns US: "Don't Disturb" Hong Kong Social Order; Threatens "Bad Reaction"

Over the past few months, tensions have been high between the U.S. and China. Events such as China denying USS John C. Stennis and its escort ships access to a Hong Kong port showed just how strained relations have become between the two countries, and with China's recent comments saying that U.S. activity near the Fiery Cross Reef "threatened China's sovereignty and security interests", one would assume that things couldn't get much worse.

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