Skip to comments.GOLDMAN: Investors Need To Wake Up Because The Fiscal Cliff Is Only Getting Scarier
Posted on 08/19/2012 8:31:37 AM PDT by blam
GOLDMAN: Investors Need To Wake Up Because The Fiscal Cliff Is Only Getting Scarier
Aug. 19, 2012, 11:05 AM
It may be time for a reality check for investors who are shrugging off the fiscal cliff.
That's according to Goldman Sachs chief U.S. equity strategist David Kostin, who writes in his latest note to clients that "portfolio managers have been swayed by hope over experience" when it comes to anticipating the effects the fiscal cliff will have on markets.
Kostin writes that investors aren't giving as much attention the fiscal cliff as they should be, and that may be helping to set the markets up for a repeat of last year, when the debt ceiling negotiations sent stocks plummeting.
From the note:
A look at the 2011 trading pattern of the S&P 500 explains the reason for our belief that the market has an asymmetric risk profile and offers more downside than upside. Last year the deadline for Congress to raise the federal debt ceiling was known months in advance. Nevertheless, Congress was unable to reach an agreement that satisfied all factions. Investors were stunned and the S&P 500 plunged 11% in 10 trading days (and more than 17% from the level one month prior to the deadline). Eventually Congress reached a compromise on raising the debt ceiling.
We believe the uncertainty is greater this year than it was 12 months ago...Political realities and last years precedent suggest the potential that Congress fails to reach agreement in addressing the fiscal cliff is greater than what most market participants seem to believe based on our client conversations. In our opinion, equity investors seem unduly complacent on this issue. Portfolio managers have been swayed by hope over experience.
This month's stock market rally marked a major divergence
(Excerpt) Read more at businessinsider.com ...
So I guess we should be piling up money to buy when the market falls.
I don’t care much about the market value of my current portfolio, as long as the dividends keep coming in, but I haven’t been buying anything in this market.
This is baseless fear-mongering - once you get past a certain height, the results are always fatal.
The ten, standing with pomp and glitter, head for their vaults.
The people, angry and in disarray, loot the shops.
Which of these knew in advance? The eagle? The bear? The crown? The Sun?
No, fate was not a consideration for this race.
The earth will be found wanting and crying:
"We want our entitlements!"
Isn't that how the most money is made on the market ?
Isn't that how Presidential election campaigns are run ?
Isn't that how the MSM sells laundry detergent ?
So which of the two are we to believe?
Goldman Sachs is a crony partner of the Obama administration. Goldman bought controlling interest in CARRIX, the largest cargo moving company in the world, and has been busy working to build “Gateway” terminals in this country and around the world. Gateways are part of the Agenda 21, Wildlands Project, which attempts to limit (actually reduce) the rural population of the US, and move the rural population into the cities, while creating multi-modal transportation corridors to move people and cargo through the rural areas, and limit human incursions. The idea is to reverse the economic trends and human migration trends, sending US natural resources to developing countries, where the manufacturing and jobs will be created.
A big part of the plan is to divert trade away from the Mississippi River by increasing rail lines to the west coast and building more terminals on the west coast to ship resources and food to Asia. Goldman Sachs is helping and is getting our tax dollars to do it.
Maybe the market is anticipating a rout of Zer0.
It look like the only company that anyone should be investing in is GS! They're too politically connected to both parties to fail.
I've been anticipating your answer.
The three entities most responsible for the approaching financial collapse:
1 - The US Government
2 - The Federal Reserve Bank
3 - Goldman Sachs
You forgot one:
I don’t think that Goldman Sachs would benefit from a market panic. Goldman’s tactics are more subtle than that, more fascist. Goldman Sachs is buying up infrastructure around the world, ports, terminals, bridges, etc. Goldman wants to control not only the cargo, but the infrastructure the cargo moves on or through, rather than the cargo, itself. Oh, Goldman probably owns a lot of cargo, too.
Fascist government partners never care who represents the government. The governing elite are still the deal makers, which ever party they belong to.
Far worse in fact. Exponential growth is also a total illusion, proved already by the Housing Bubble and Stock Market Bubble. The totally corrupt federal reserve is at the crux of everything: Corrupt Banksters are positioned to make $$$$$$$$ Trillions while the rest of us will starve