Goldman Sachs The Markets Can US equities rally again?
15 snips
Mar 28, 2025 
Join John Flood, Head of Americas Equities Sales Trading at Goldman Sachs, as he delves into the current state of the US equity market, which has dipped 10% and seems stagnant. He analyzes investor behaviors during uncertain times, examining the actions of retail investors and hedge funds. Flood discusses a significant buy imbalance favoring equities over bonds and scrutinizes global investment trends, particularly concerns surrounding European equities. He also anticipates upcoming economic indicators that could influence future market dynamics.
AI Snips
Chapters
Transcript
Episode notes
Market Bottom
- The US equity market hasn't found a bottom yet due to uncertainty from the current administration and headline risks.
- High-velocity hedge fund performance destruction and de-risking occurred on March 7th and 10th.
Market Participants
- The S&P 500's 200-day moving average (200 DMA) at 5760 is acting as a magnet, with sellers emerging as it's approached.
- Retail investors are re-engaged, CTAs are short, long-onlys are frozen, hedge funds remain sidelined, and corporates are in a buyback blackout period.
Pension Rebalancing
- Upcoming pension rebalancing will create a significant buy imbalance in equities.
- This is estimated at $25 billion for S&P 500 and $25 billion of bonds for sale, impacting the market.