Goldman Sachs CEO Urges Policy Stability Amid Rising Borrowing Costs
Goldman Sachs International Co-CEO Anthony Gutmann recently emphasized the need for a stable policy environment to address rising borrowing costs. Speaking at the European Financial Forum on October 05, 2026, Gutmann stressed that reducing government spending and fostering economic growth are crucial to curbing these costs. He noted that rising yields on government bonds, particularly in the U.S. and France, pose significant challenges for Western economies. Despite a disappointing non-farm payroll report for September, U.S. Treasury yields remained high, with the 10-year yield slightly decreasing to 5.2581%, while the French 10-year bond yield rose above 4.8812%.
Gutmann acknowledged the complexities of government decision-making in the current fiscal environment, which complicates addressing these issues. He also warned that the upcoming election cycle in Europe, coinciding with Spain's early elections, introduces additional policy uncertainty for businesses. However, he expressed hope that spending cuts and economic acceleration could restore market confidence.
Super Micro Computer Inc (SMCI), a technology company specializing in high-performance server and storage solutions, currently trades at a Price-to-Sales (P/S) ratio significantly below its historical median of ~0.6x. This indicates that traditional earnings-based valuation metrics like P/E do not apply due to the company's cash flow negativity. SMCI has a GF Score™ of 90/100, reflecting strong financial health and growth potential. However, insider activity shows that in the last three months, insiders sold shares worth $15,436,000, which may signal caution for investors.
The GF Value™ for SMCI is calculated at $88.66, suggesting the stock is undervalued by approximately 50.7% compared to its current price of $43.69. While the GF Score™ highlights SMCI's strong growth potential and robust profitability, its valuation rank is notably lower, indicating potential caution. Guru ownership data shows that 8 gurus currently hold shares of SMCI, with 7 adding to their positions and 2 trimming their holdings in recent quarters.