Goldman Strategist Cautions Stocks Are About to Fall

The S&P 500 Index has nowhere to go but down. So says Goldman Sachs tactical strategist Scott Rubner, who cautions “I am not buying the dip.” That’s because today has historically marked a turning point for returns on the equities benchmark, the Goldman global markets division managing director said, citing data going back to 1928. And what follows, of course, is August—typically the worst month for outflows from passive equity and mutual funds. Weak seasonality, stretched positioning and with all the good news already priced in, the index is on the precipice of a summer correction. It’s a view Goldman’s trading desk has been leaning into since at least early June.

HSBC named Georges Elhedery its next chief executive, continuing the lender’s tradition of picking insiders to run the bank. Elhedery will replace Noel Quinn, who in April announced his surprise decision to retire after a more than three-decade career, including five years as CEO. The 50-year-old Elhedery takes the role less than two years after his promotion to chief financial officer. Before that, the Lebanon-born, French-educated banker had a six-month sabbatical that included spending some of his time learning Mandarin. The HSBC CEO role is one of the biggest seats in global finance, given the worldwide span of the bank’s business, which incorporates hubs in the UK and Hong Kong, as well as major operations in several other countries including the US, China and Saudi Arabia.