You’re a Goldman client. Ok, no you’re not. But let’s pretend. What is it you’re thinking about these days? Well as it turns out, you’re thinking the same thing everyone else is thinking (with the possible exception of Target managers-turned hedge fund titans buying XIV on dips with other people’s money). Namely, you’re thinking this: “Is an equity correction imminent?”

I mean “yes”, the central bank put is still firmly in place and that means the BTFD mentality is still deeply entrenched, as are the feedback loops the BTFD mentality fosters, the same feedback loops that make multi-millionaires out of former Target logistics managers and the same feedback loops that make it impossible for active managers to generate any alpha.

That said, the fraught political backdrop and escalating geopolitical tension stands in stark contrast to suppressed cross-asset volatility and stretched multiples, leading rational people to wonder whether Wile E. Coyote has run off the cliff.

Now again, you probably don’t care about this if you’re a retail investors but just in case you want to know what institutional clients are asking, read more from Goldman below…

Via Goldman