Goldman: High Correlation, Low Returns Dispersion Hitting Stocks

As correlations spike, a Goldman Sachs report, re-iterating messages in previous analysis to a degree, points to a challenging market environment for stock picking as correlations and return dispersion concerns linger after the Fed rate hike no decision decision.

Goldman: Fed rate hikes will likely ensure that macro risks remain in the headlines over the next several months

The stock picking will remain challenging over the near-term because macro forces, China, the Fed, emerging market weakness, will keep their grip an equity market that “struggles to find its equilibrium,” the September 21 report from Goldman’s portfolio strategy team predicted. “Lingering uncertainty stemming from an...