Equities: Reflationary environment likely to support buying the dip – Goldman Sachs
Analysts at Goldman Sachs recommend buying the dips for the global equities, including the S&P 500 index, in light of the stimulus measures.
Key quotes
“The market is rising on good news but choosing to largely ignore weaker data and rising infection rates.”
“There is a risk of a correction, but without a bear market inflection.’
“The sharp rebound is “almost identical” to the recovery from the trough of the financial crisis in 2009, which was followed by a correction.”
“The unprecedented speed and scale of policy support during the pandemic, designed to reduce the risk of longer-term scarring, has also reduced the risks of structural scarring and tail risks for investors, allowing them to ‘look through’ the downturn into a recovery.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
