Goldman Sachs:"market correction may start to get traction if payrolls are weak on Friday"


Via a note from Goldman Sachs’ managing director for global markets and tactical specialist Scott Rubner on Wednesday.

  • “A market correction may start to get traction if payrolls are weak on Friday,”

Expects selling to pick up from September 16. GS estimates about US$6.6 billion of passive demand until company earnings buyback blackout period begins broadly on September 13

  • “US corporates have been the largest buyer of the equity market, and we expect their demand to drop by -35% during the closed window,”
  • “This week is peak open-window for corporates”
  • also, trend-following systematic funds have little room to add equity exposure

Rubner is bearish until after the election:

  • “November election becomes a clearing event for risk assets”

This article was written by Eamonn Sheridan at www.forexlive.com.