Goldman: Go to cash; “growth shocks” coming

Stock markets set for volatility for the rest of the year

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10/9/16 – (Zero Hedge)  After last week’s warning by Ray Dalio that a 100 bps rise in yields could lead to trillions in cross-asset losses, it was Goldman’s turn to pick up the bearish torch.

Hedge wrote today:

After last week’s warning by Ray Dalio that a 100 bps rise in yields could lead to trillions in cross-asset losses, it was Goldman’s turn to pick up the bearish torch with a note in which it warned that stock markets are set for volatility in the remainder of the year as a result of potential “growth shocks” which continue to loom until year-end as political risks remain elevated, given the upcoming US presidential elections and Italian referendum, and the UK government’s plan to trigger Article 50 by March 2017.

Also in the article, a report by GS managing director Christian Mueller-Glissman which included the “warning that 4 out of 5 factors suggest disappointing results ahead”

“Equities are a tough asset to own without a clear, positive trend in growth,” Mueller-Glissmann said. “It’s tough to deal with these equity draw-downs because there are very few places to hide except for cash.”

Please read the full story to see the data and learn the recommendations.

FULL STORY:

http://www.zerohedge.com/news/2016-10-10/goldman-tells-clients-go-cash-growth-shocks-are-coming

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