GARP Is Back - Goldman Pushes IT As The Lemming Sector To Be In
If there is one acronym that is more indicative of the madness of herds than BRIC, it is the recurring stupidity that is GARP, which tends to show its head at or just after the market has peaked. With hedge funds still in possession of 3.0x + leveraged liquidity and easy money no longer an option, bottom of the barrel PMs need a self validation in the form of some branding concept, even if it means buying 60x forward P/E stocks that trade on valuations made not out of fumes but of sublimated insanity. Sure enough, here comes Goldman's latest GARP reminder, telling all its best clients that after a 100% run up, IT is the sector to invest in... Just like it told them to buy, no sell, no stay away from Euros in just the last month. So without further ado, here, for those who need to throw money down the trash chute, is David Kostin on the magic that is GARP.
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