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Goldman Strategist Says Stocks Will Bottom Once Fed Signals Shift

  • Market needs to see signs inflation has decelerated: GS
  • Stocks will see more declines before Fed intervention: BofA
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US equities may see more losses before the Federal Reserve signals end to monetary tightening, according to Goldman Sachs Group Inc. and Bank of America Corp. strategists. 

“The Fed has offered no help to risk assets and appears far from stepping in,” BofA strategists including Benjamin Bowler said in a note on Tuesday, adding that market stress indicators, such as credit spreads and liquidity in S&P 500 futures, are now at levels seen during previous Fed interventions. “We believe markets will continue to test the Fed put, but that it will take more market panic for the Fed to start panicking.”