Goldman Sachs senior strategist warns stocks could see 'considerable' pre-election downside that isn't being factored into models | Markets Insider

that markets could soon see"considerable downside" based on factors that financial models cannot predict.

What Congress will do next, what the president will say, and how the election will end cannot be forecasted by modeling, the senior investment strategist said. "Those of us who have lived our professional lives really focusing in on the math, I think should feel very humble right now," Cohen said."Because what we recognize is that the models may not be able to properly reflect all of the volatility not just in the markets, but in the economy, in policy, and of course in investor sentiment."Warren Buffett's Berkshire Hathaway shocked investors with its Snowflake and Barrick Gold bets.

While Cohen said that it's not unusual for volatility to rise before an election, there's also been"erratic movement" with regard to fiscal policy. Stocks quickly sold off on Tuesday after Trump tweeted that negotiations for the next stimulus plan would be halted until the election. The famed strategist also said there are"wide gaps" in the relative valuation of stocks. Just a handful of stocks drove the market's record rally following its March lows. Cohen said this can make the market more volatile, and more vulnerable to disappointments.

Surprising big Democrat wants market crash

Check out my Gig on Fiverr: I will make an unique website promo and presentation video

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Former Goldman Sachs CEO Lloyd Blankfein says market has 'bubble elements' - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Regeneron requests emergency approval for antibody treatment taken by Trump; stock rises 4% in pre-marketRegeneron requests emergency approval for coronavirus treatment taken by Trump I smell a scam.....this seems like co-ordinated conman scamming I hope it will be free. It’s super expensive and lots of people do not have medical insurance. Would it even be covered? We are in an emergency. If this moves it forward and Trump is willing to be early volunteer, it’s a good thing.
Source: CNBC - 🏆 12. / 72 Read more »

Former Goldman Sachs CEO Lloyd Blankfein says market has 'bubble elements' - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Stock market outlook: Why US elections will drive volatility and risk - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Peloton stock investing outlook: Analyst, survey warn it's expensive - Business InsiderPeloton's market cap just reached a record $32 billion — but a new survey and Wall Street's solo bearish analyst warn its valuation should be less than half of that. Here's why investors should be cautious.
Source: BusinessInsider - 🏆 729. / 51 Read more »