Goldman gives up on equities. Bullish!

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Always the last to know on the downside, Goldman has capitulated on equities.

Given the lack of macro imbalances, I am of the view that it will be a plain vanilla US recession.

For earnings, the idiosyncrasy of this cycle is the speed and severity of the reversion to mean in corporate margins as the reverse bullwhip effect ends the party. 

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.