Goldman Sachs says Trump rally has been curbed

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https://www.bloomberg.com/news/articles/2017-02-06/goldman-sachs-says-trump-rally-curbed-as-economy-lags-enthusiasm

Hopes for a pro-growth suite of fiscal policies under President Donald Trump buoyed financial markets after Nov. 8, sparking a rise in measures of consumer and business confidence that sent the gap between these “soft” data and measures of real economic activity to its widest level in six years.

This exuberance is probably peaking, writes Charles Himmelberg, Goldman Sachs Group Inc.’s chief credit strategist, who cites several signs of cooling sentiment:

  • The Conference Board’s measure of consumer expectations for the U.S. economy over the next six months fell to 99.8 in January from 106.4 the prior month, registering its steepest decline in more than a year.
  • Retail investors’ preference for stocks over bonds after the election has almost fully reversed, according to Himmelberg, with the four-week trend for mutual-fund flows into U.S. bond funds hitting a six-month high.
  • The post-election outperformance of Goldman’s “cyclicals versus defensive” basket of stocks has ceased; it now trails the S&P 500 index’s advance since the election.
  • The yield on 10-year Treasury Inflation Protected Securities jumped nearly 60 basis points in the five weeks following Nov. 8, but has since pared nearly half of that move.

“The risk for markets, ironically, may be the strength of recent macroeconomic data, which may have encouraged markets to price a more sustained improvement in GDP growth than we think likely,” adds Himmelberg.

The upshot is that the market increasingly believes Trump’s policies will do more to stoke inflation than buoy growth in the short run.

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“This exuberance is probably peaking, writes Charles Himmelberg, Goldman Sachs Group Inc.’s chief credit strategist”

himmelberg..is there anybody at GS who isnt clan of berg???

“The upshot is that the market increasingly believes Trump’s policies will do more to stoke inflation than buoy growth in the short run.”

401

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~ by seeker401 on February 8, 2017.

12 Responses to “Goldman Sachs says Trump rally has been curbed”

  1. Cant have it both ways. Either trump has hired so many ex GS employess because Trump is a GS shill….or GS is against him..?

    Trump said all through his campaign, “we will get the best people..” . And he did. The best people were always going to be rich, powerful and have worked for big corporations. Big corporation head hunt THE BEST talent from universities. The chance of someone who is THE BEST, coming in from obscurity, only mildly wealthy, no power and no history of excellence is a pipe dream! Someone like that IS NOT GOING TO BE THE BEST!

    GS head hunt the best. Obviously it was inevitable some of THE BEST were going to have come from GS.

    Trump is doing fine. Theres an old saying..; “you will never get anywhere if you stop and throw rocks at every barking dog..” (Churchill)

    Trump is going at a million miles per hour…AND manages to nail plenty of those barking dogs with well aimed rocks!!

  2. Trump just gave Rand Paul go ahead to AUDIT THE FED!!!

  3. Reblogged this on World Peace Forum.

  4. He tried to stop this from screening after production.,

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