Goldman Sachs trader: US stocks are still in a bull market, but the margin for error is quite small

Tony ·Pasquariello, a top trader at Goldman Sachs, pointed out that five of the Fed’s rate cuts over the past four decades have not followed a recession, and on average, the S&P 500 market pumped 17% in the 12 months after the first rate cut. However, under the current rate cut cycle, United States’ GDP rise hovers around 3% strongly, and the Dow and S&P regain record highs, which makes the current stock market, especially the Nasdaq 100, which is dominated by technology stocks, “not very attractive in risk/reward” and “quite little room for error”. He still believes that the US stock market is in the bull market, and “the future trend is still higher”, but the risk/reward has been significantly downgraded, “the setting is very demanding, and the path will be unstable”, but the strategy of buying in the past two years when the market pulls back sharply in the future is still effective.