Goldman’s Oppenheimer says stocks will stay ‘fat and flat’ — and reveals how to trade it

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A rescue deal for Credit Suisse could give markets a boost, but Goldman Sach's Oppenheimer believes there is a more fundamental problem for stocks.

A potential crisis in the global banking sector may have been averted over the weekend, as Swiss authorities stepped in to broker a deal for UBS to acquire embattled Credit Suisse . But stock markets are not out of woods yet, according to Goldman Sachs Chief Global Equity Strategist Peter Oppenheimer. He believes contagion fears around the banking sector are just one of several risk factors afflicting stocks, and predicts the market will remain "fat and flat" in the near term.

stocks continue to look stretched and offer "very little return," while cash and short-duration debt looks "very attractive" relative to stocks. Heading into the next Federal Open Market Committee meeting on Tuesday, Oppenheimer believes even an interest rate cut would not provide a meaningful boost for equities. He noted that U.S. stocks delivered about twice their usual returns after the first rate cut, but almost no return three months after.

 

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Oh look, it's just that simple folks. Just do what the predictors of the future tell you. No thinking required.

One thing for sure…they have no more idea than the rest of us where this shit show is going!

🤔

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