The Markets The Bubble Question
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Oct 17, 2025 Mike Washington, an equities sales trader with Goldman Sachs, dives into the current state of U.S. stocks and whether a market bubble is looming. He discusses resilient bank earnings and continued consumer spending, highlighting that the markets might be underestimating trade war volatility. Retail investors’ reactions to market dips also take center stage, alongside his recommendation for retail exposure with downside protection. Mike emphasizes upcoming tech earnings and the risks of market concentration, offering crucial insights for traders.
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Banks Signal Consumer Strength
- U.S. bank earnings have been resilient and broad earnings look pretty good so far this quarter.
- Banks report strong consumer spending, which supports broader market health.
Retail Traders Bought The Dip Fast
- A surprise tariff headline caused a sharp but short-lived market drawdown last week.
- Retail investors quickly bought the dip and pushed markets back to pre-shock levels.
Elevated But Not A Dot‑Com Bubble
- Mike sees some froth and expects a 5–8% pullback but not a 30–40% bubble collapse.
- He cites valuation, fund flows, and consumer resilience as reasons markets aren't a classic bubble.