Investor Sentiment

Goldman's Clients Are Becoming Increasingly Schizophrenic

"Reluctance is warranted. For one, elevated equity multiples mean that a continued rally in equities from here is heavily levered to better earnings, but the macro drivers of corporate profit margins all appear headed in the wrong direction."

Kass: "Sell The FANGs"

"TV folks say the market is healthy without the FANG names. Of course, they said it was healthy when it was just the FANGs..."

Euro Tumbles Ahead Of Yellen, Macron Speeches As Stocks Shake Off Korean Crisis

S&P futures are flat after Monday’s tech-driven drop and as tensions with North Korea are once again put on the backburner; Asian stocks are modestly lower while Europe has shaken off the Korean crisis and is in the green on the back of a sharp drop in the EURUSD which has tumbled below 1.18 as the USD rises ahead of much anticipated speeches by the Fed Chair and the French president.

Draghi's 4 QE Scenarios Unveiled As ECB's Reuters "Trial Balloon" Strikes Again

In our concluding comments on the ECB's disjointed message yesterday, in which Draghi feebly tried to talk down the EUR, we said "And now that the market is supremely confused, we expect the ECB to lob the next Reuters trial balloon any moment to punish all those who keep buying the EUR." Less than one day later, this is precisely what happened.

The Truman Show Markets

"Fake news, fake economies (based on fake demand dependent on asset bubbles), fake markets (dependent on QE and low interest rates). It’s the Truman Show, folks."

Netflix Is Spending Twice As Much As Amazon On Content

To continue its growth, Netflix will have to spend some $8.7 billion in cash on new content, nearly $2 billion more than it did in 2016, and more than double what its nearest, and cash flow positive competitor, Amazon, is spending on new content.

Goldman's Clients Are Confused About Inflation: Here's Why

The US inflation outlook and its equity investment implications were key topics of discussion during recent visits with clients in Boston, Chicago, and New York. Looking forward, will the rate of inflation in 2018: (a) decelerate, (b) accelerate, or (c) stay about the same? The answer depends on the information source.