Goldman Sachs is stuffed! Customer mind is full of panic innawoods

Goldman Sachs is stuffed! Customers filled with panic U.S. stock market center: exclusive national industry sector stocks, premarket after hours, ETF, real-time quotes warrants FX168 financial newspaper (Hongkong) –   (Goldman Sachs) recently Goldman mailbox almost overwhelming to be filled with letters! The investment bank’s customers are constantly asking a question: what is the performance of gold in the case of falling stock markets and rising interest rates, especially if interest rates will lead to the withdrawal of shares? On Friday (September 9th), the S & P 500 index fell by 2.4%, as of Wednesday (September 14th), the index has fallen from a record high of about $3% a month ago. And investigate the reasons behind, that is after many Fed officials have issued hawkish remarks, the September rate hike is expected to heat up to. This is a panic for Goldman’s customers who want to seek refuge. Looking back on history, gold in the long-term bear market and the Fed’s interest rate hike cycle are doing well. 2016 so far, affected by the global economic downturn and the impact of risk aversion warming, the price of gold has jumped 25%, far more than the S & P 500 index. (in contrast, BlackRock asset source: FX168 financial network) of course, since the beginning of 2010, the U.S. stock market has experienced a long bull market for nearly 7 years, during which the gold rose only 18.6%, while the S & P 500 index rose 88.8%. However, if you look at the 10 years before the 2008 financial crisis, you will find that gold rose over the same period is more than double the S & P 500 index returns, the cumulative increase of up to 127.7%. It is not difficult to see from Goldman’s unusual move that they want to find a way to hedge against future stock market declines. In fact, gold is a very good stock market hedging tool, because it is very low correlation with the stock price, in the previous financial crisis, gold has recorded a good performance. In view of the year gold strong performance, had been bearish Goldman in July changed the tone, the commodity research director Jeffrey Currie said he believes the gold "from a strategic sense to hedge the global troubles". However, despite the current in a good environment, including increasing geopolitical and financial uncertainty, but Currie pointed out that Goldman is expected after the price of gold may be slightly weaker, back to $1300 an ounce. The hedge fund Elliott Management, President of Paul Singer the billionaire Tuesday speech, said that the global market is in a "very dangerous" period, the policy is exacerbating inequality and instability, debt and low interest rates lead to economic weakness, expect the stock market and the bond market risk also fell. Singer stressed that the current inflation risk is contrary to all expectations, it is recommended to sell long-term bonds with gold. BlackRock (BlackRock) global asset allocation team in charge of Cong相关的主题文章: