Goldman: This Was The Sharpest Rally Since The Financial Crisis… It’s Now Over

Wednesday, March 6, 2019
By Paul Martin

by Tyler Durden
ZeroHedge.com
Wed, 03/06/2019

One can’t say they didn’t warn you:

On December 23, with the S&P points away from a bear market, Steve Mnuchin called the Plunge Protection Team, i.e. President’s Working Group on capital markets, with one clear message – stop the plunge.
On December 25, Trump pulled an Obama, and told Americans to buy stocks: “We have companies, the greatest in the world, and they’re doing really well,” the president told reporters at the White House on Christmas Day. “They have record kinds of numbers. So I think it’s a tremendous opportunity to buy. Really a great opportunity to buy.” (Pension funds heard him loud and clear, unleashing the biggest stock buying spree in history the very next day).
On January 4, just two weeks after Fed Chair Powell hiked rates by 25bps and said the Fed’s balance sheet was on “autopilot”, and tightening would continue, the former Carlyle lawyer, sitting between Bernanke and Yellen capitulated, and for the first time said that the Fed would be patient, effectively ending the Fed’s rate hike posture.

What has transpired since then is nothing short of breathtaking, with the S&P rebounding from the mid-2,300 to 2,800 (and on same days rising above it), in what Goldman dubbed “one of the sharpest rallies in history.” Indeed, as shown below, the rolling 67-day price return of the S&P is the 3rd fastest rally this century, perhaps ever. In other words, there are bear market rallies and then there are bear market rallies, and what we have just experienced was, according to Goldman, “the sharpest rally since the global financial crisis recovery, and sharp valuation re-rating alongside negative earnings revisions”…

The Rest…HERE

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