Goldman Trader: This Rally Is Nothing But A Huge Bear Market Squeeze; Stocks Will Be Lower "Over The Next Few Weeks"

As David Kostin writes in his latest Weekly Kickstart note, two years ago this week, the S&P 500 index troughed at 2237: while covid led to one of the fastest and deepest equity market drawdowns in history, a 34% plunge in just 23 trading days, the subsequent performance of the US equity market since that trough has arguably been even more impressive with the S&P 500 returning 99% in the two years following, the best 2-year price performance in at least 75 years.

Picking up on Kostin's observations, his Goldman co-worker and head of hedge fund sales, Tony Pasquariello writes that he finds it only a little interesting that S&P has doubled from the trough - after all central banks and governments unleashed tens of trillions in helicopter money which enabled the historic risk asset hyperinflation over the past years.