What is the next pain trades in stocks? Goldman Sachs answers

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What is the next pain trades in stocks? Goldman Sachs answers

Equity markets are expected to face a shift in the flow of funds as historical patterns suggest a slowdown in passive inflows and a potential uptick in outflows come August, Goldman Sachs strategists said in a report on Monday.

However, historical data points to August as the worst month for equity flows, with no substantial inflows predicted as capital for the third quarter has already been allocated. Analysts are modeling a late summer equity market correction based on this historical precedent. Moreover, the first half of August is typically the fifth-worst two-week period for the S&P since 1950.

 

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