Goldman Sachs Says Growth Fears Are Causing the Equity Meltdown

  • Macro model signals economic concerns on monetary, oil risk
  • U.S. financial conditions tighten back to May 2017 levels
Strategist Shah Warns of Bigger Selloff, Correction Coming in 2019
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Wall Street’s on a frenetic quest to uncover the culprit behind the global equity rout -- and a straightforward theory from Goldman Sachs Group Inc. is oneBloomberg Terminal of the more dispiriting.

Slice and dice cross-asset gyrations to filter out the noise, and the broader market signal is unmissable: Investors are tempering their growth projections as they price-in the era of higher rates and tighter oil supply.