"Is it time to enter the market?" Goldman Sachs' risk chief turns bullish on risk assets
As the market awaits guidance from the White House, Goldman Sachs Chief Strategist Josh Schiffrin stated in an email to clients that, despite his previous negative stance on risk assets, he has now turned bullish and believes it is time to start building positions in batches. He thinks the current market downturn is temporary, and prices are expected to rise in 6-12 months, with trade negotiations and tax reduction policies potentially driving a market rebound
Since last week's "Liberation Day," global stock markets have experienced a panic sell-off, with market capitalization evaporating by trillions of dollars.
The market has been eager for guidance from the White House over the past five days, but aside from debunking the false news of "tariff suspension for 90 days," the White House has not provided any other clear clues.
In the midst of market confusion, on Monday afternoon Eastern Time, Goldman Sachs Chief Strategist and Head of Financial Risk Josh Schiffrin stepped forward. In an email sent to the company's trading clients, he stated that despite his previous negative stance on risk assets, he has now turned bullish and believes it is time to start building positions in batches.
He believes that the current market downturn is only temporary, and prices are expected to rise in 6-12 months, despite the risks of global trade conflicts or recession. However, trade negotiations and tax reduction policies may drive a strong market rebound.
He also emphasized that negative sentiment has become very high, and current prices will prove to be an opportunity, but given the enormous uncertainty, it is important to build positions in batches. Considering the high volatility, selling out-of-the-money put options is another reasonable strategy.
Schiffrin's views were released to the media on X at 1:10 PM Eastern Time on Monday, and the S&P 500 index saw a slight rebound.
