Get Your Kool-Aid Here

Goldman put out a breathless piece this morning about how cheap equities are relative to treasuries, calling this a rare buying opportunity. Where were they 6 months ago before stocks rose 30%? I would note that treasury yields were lower at that time as well. One thing that never changes in the market is that people get bullish higher and bearish lower.

These type of calls after a long rally are cautionary as they tell you that everybody is drinking the Kool-Aid. This is yet another sign that sentiment is overheated and that caution is warranted. I continue to expect more corrective action this week.


ichern18 said...

Come on Tsachy, you know very well where they were 6 months ago.  Buying with both hands.  Now they need to sell to the suckers, hence that piece.

Tsachy Mishal said...

I think you give them too much credit. I think these strategists are just lemmings who mine data to support whatever they are feeling. If GS were that smart they would not be doing so poorly.