Goldman Sachs

The Last Time This Happened, The Market Crashed

A few days ago Charles Schwab, the investment brokerage firm, announced that the number of new brokerage accounts soared 44% during the first quarter of 2017. More specifically, Schwab stated that individual investors are opening up stock trading accounts at the fastest pace the company has seen in 17 years. Anyone remember what happened 17 years ago?

Market Absurdity Squared: There Is Now An ETF ETF

A landmark event took place yesterday, one which, at least according to Bank of America, may signal that we have hit a top. After $2.9 trillion of inflows to passive funds, and $1.3 trillion redemptions from active funds past 10 years, an ETF ETF has launched.

Goldman Warns 1-In-3 Chance Of Government Shutdown In May

Goldman's Jan Hatzius believes the odds of a government shutdown next week are fairly low, but rise to around one in three if the debate extends into May. A shutdown at the start of the next fiscal year, in October, is a greater risk in their view.

Scientific Proof ETFs Make Markets Dumber

"Our evidence suggests the growth of ETFs may have (unintended) long-run consequences for the pricing efficiency of the underlying securities."

Maduro Preparing To Swap Venezuela's Gold For Dollars

“The national government, through the central bank, is going to try to swap gold held as reserves for dollars to stay in power unconstitutionally,” according to the letter signed by National Assembly President Julio Borges.

Goldman Asks: Are Markets Rationally, Or Irrationally, Exuberant?

The distinction between rational and irrational sentiment matters. If improvements in sentiment “rationally” reflect recent macro data or “news” about future developments, they likely foreshadow stronger growth. But to the extent that sentiments are “irrational,” they leave the economy more vulnerable to cycles of overheating and correction.