Goldman Says Stocks Risk ‘Elevator Down’ With Quants Near Max Long
- Pain trade is stocks up on debt deal, then correction: Rubner
- Pullback is bad news for hedge funds just warming up to stocks
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The stock market is becoming more prone to a swift pullback as opposed to keep climbing at this stage, with rules-based traders boosting their equity exposure to the top of a historic range, according to Goldman Sachs Group Inc.’s Scott Rubner.
While the S&P 500’s next 50-point move could be higher around any favorable headlines out of US debt-ceiling negotiations, the next 100-point move will likely be lower, said Rubner, a managing director at Goldman who has studied flow of funds for two decades.