Volatility in the Wall Street houses is rising as it is on markets. Most are still bullish on good growth and margins. Goldman is typical:
The recent ‘risk-off’ in markets has come alongside sharp unwinds of bullish investor positioning: our aggregate sentiment measure has fallen below the 50thpercentile for the first time since the Coronacrisis and our Risk Appetite Indicator(GSRAII) fell sharply into negative territory, reaching -1.2 at the trough earlier this week.
While positioning has likely exacerbated the recent moves, including the recent reversal, we think macro conditions will be the key market drivers from here. With both monetary and fiscal support fading, better newsflow on the Omicronand continued healthy growth levels are needed to support investor sentiment from here.
