Goldman Sees Ping-Pong Volatility in US Stocks

Katherine Bordlemay, co-head of client portfolio management at Goldman Sachs Asset Management, has expressed her expectations for US stocks. In a recent interview on Bloomberg's "Open Interest," she described a pattern of volatility as a 'ping-pong' phenomenon. This pattern is characterized by fluctuations in stock prices due to changes in US Treasury yields, which have been rising.

Bordlemay believes that stronger earnings have cushioned the impact of these yield increases on equities. As a result, major indexes are continuing to rise despite the volatility. She expects this 'ping-pong' pattern to persist even as markets grind higher.