Goldman Sachs: Volatility at this time of year is "normal," nothing "unusual"
Jinse Finance reported that Goldman Sachs believes the recent approximately 5% correction in the US stock market is a typical year-end seasonal fluctuation within the AI cycle, and not an abnormal signal indicating the end of the rally. Goldman Sachs traders pointed out that although the market has experienced a pullback, there is still room for an upward move before the end of the year. Supported by seasonal factors, the early stage of the AI investment cycle, and relatively light institutional positions, the index still has the potential to rise further. According to Shreeti Kapa, a trader in Goldman Sachs' fixed income, foreign exchange, and commodities division, a 5% decline at this time of year is a normal phenomenon in the current cycle. She believes that although the market has experienced a strong rebound since the April low, overall, "it is not excessive."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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According to data from the US Department of the Treasury, in the 12 months ending July this year, overseas investors made net purchases of US stocks totaling $942 billion, marking the highest rolling 12-month total since records began in 1985. The net purchases in the second quarter alone reached $426 billion, setting a new single-quarter record. Meanwhile, overseas demand for US Treasuries has noticeably cooled, with purchase volumes falling significantly. As a result, the US is facing higher costs in government debt financing.
