Markets are about to shift from a search for yield into a search for safety, a Goldman Sachs report said one day before the S&P 500 hits a record intraday high. As troubles for Italian banks mount, the report noted the potential for a government funded “recapitalization” that could be subject to a political backlash. This all comes as the investment bank lowered its forecast target on the S&P 500 Thursday and expects central bank corporate bond buying to impact credit markets by further exacerbating the search for yield. Goldman: Search for yield could transform into search for safety These are…
Goldman: Italian Bank Bailout Could Total €40 billion; Search For Yield Could Turn Into Search For Safety
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.