With stocks experiencing their best 3-day run in six months, Goldman Sachs is quick to prepare the “use the recent downdraft to build toward their strategic allocation to equities” meme. In 16 pages of bright-and-breezy charts and commentary, Goldman interprets the Fed’s (dovish) commentary, explains the dovish implications to buy stocks and risky debt, and throws cold-water on the fears of China. It appears we have nothing to fear but fear itself (oh, and a global marketplace experiencing near-crisis-level volatility and deleveraging) because it’s all Goldilocks from here – as good is great, bad is good, and no news is absolutely bullish. Contrast this bonds bad, stocks good perspective with Jeff Gundlach‘s dismissal of the great rotation meme earlier.
The Federal Reserve Dont Let It Be Misunderstood