Goldman Sachs Sees Volatility Ahead, But Bull Market Trend Intact

Tony Pasquariello, Head of Global Hedge Fund Client Business at Goldman Sachs, believes the US stock market may face increased volatility after Labor Day. However, he remains bullish on the market's overall trend due to strong corporate earnings and favorable technical conditions.

Pasquariello stated in a client report dated August 7th that the S&P 500 Index broke out of a months-long consolidation range, reinforcing his bullish view. He expects increased supply and unfavorable seasonal factors to put pressure on the market in September but does not think these will end the upward momentum in equities.

Investors remain long, but positions have become more balanced after significant 'risk transfer' in July. This clearer position configuration may explain the renewed demand for equities as the market rises.