• Welcome to forex.pm forex forum binary options trade. Please login or sign up.
 

Goldman Sachs ask "Could this turn into a bear market?"

Started by forex4you, Aug 07, 2024, 06:30 am

Previous topic - Next topic

0 Members and 1 Guest are viewing this topic.

forex4you

Goldman Sachs ask "Could this turn into a bear market?"

Via a Goldman Sachs note on the volatility in equities this week:

Could this turn into a bear market?

  • This, in our view remains unlikely.
  • Ultimately most bear markets are a function of recessionary fears as it is economic contractions that lead to profits falling. While our US economists have increased their probability of recession over the next 12 months by 1Opp to 25%, it remains a risk rather than a likely outcome and yesterday's ISM services print was strong (51.4 vs 51 expected and 48.8 prior) suggesting that a broad downturn is not imminent.
  • At any rate, there is plenty of room for interest rates to fall to soften a continued bout of economic weakness and central banks are no longer constrained by the fear of high inflation. Very significant cash piles have built up and are sitting in money market funds that can be tapped to take advantage of lower stock prices. Furthermore, systemic risks remain controlled given that corporate and banks balance sheets remain healthy and can absorb the impact of weaker growth better than in many other downturns.

---

A bear market is officially a 20% decline.

We are a long way from that right now. But, the day is young ;-)

Screenshot is a rough guide:



                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: Goldman Sachs ask "Could this turn into a bear market?"

forexlive.com
Forex4you offers wide range of trading accounts with DDE, NDDE and STP executions including more than 100 instruments. Forex4you is based on MetaTrader 4 trading platform. Clients have the advantage of daily technical and fundamental analysis, one-click trading, economic calendar, mobile trading applications, news and forecasts from Dow Jones (UK) and signals from Trading Central (US). In addition, Forex4you offers Forex dictionary, educational materials and lot of "How to" guides about Forex.

forex4you.com   share4you.com   betiforex.com Forex  beginners-guide-to-iq-option-complete-review forex4you review forex4you Forex4you Review - One of the Best Forex Brokers Forex4you Review - One of the Best Forex Brokers forex4you - PAMM forex broker review and feedback from traders forexbinaryoption.ae aroundworld24.com  Affiliate programs  Forex4you Affiliate programs   



forex4you.com