Analysts at Barclays attracted plenty of criticism at the beginning of February when they published a research note claiming that so-called “animal spirits” were now in control of investors and the presence of these spirits will ensure equity markets continue to push higher, no matter what the macro economic backdrop.
Barclays: Forget Valuations! Animal Spirits Are Driving The Market Higher
The topic of so-called “animal spirits” is the focus of the April issue of Goldman Sachs’ monthly Top of Mind global macro research booklet. The booklet features an interview with economist Roger Farmer, who argues that market sentiment can be self-fulfilling, which means the “animal spirits” argument is not so difficult to comprehend after all.
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