Goldman Sachs abandons its bearish near-term view on stocks, says the bottom is in

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Goldman Sachs believes the stock market bottom is behind us -- as long as we don't experience a second wave of coronavirus infections.

With the long Easter weekend behind us, stocks are pointing to a lower start for Monday as coronavirus fallout swings into focus and a production cutting deal by oil majors appears to have fallen flat.

Why? “The combination of unprecedented policy support and a flattening viral curve have dramatically reduced downside risk for the U.S. economy and financial markets and lifted the S&P 500 out of bear market territory,” said Kostin, whose gloomy stock prediction from last month came the day before a complete market meltdown.

“Although the pandemic progress of the past week and the Fed programs are not exactly one-off events, they won’t be repeating on a daily basis as disappointing earnings and economic data will be for the next couple of months. No matter how active the Federal Reserve is, this is not a tape to chase higher.”

Banks are kicking off first-quarter earnings this week, but it will take months to see who will survive a depression-level drought.

 

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Companies producing no goods or services will increasing in value. Lolz

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