In the face of a potential Federal Reserve rate cut in September, a strategist from Goldman Sachs has cast doubt on the likelihood of a resulting stock market surge.
Skepticism Grows On Money Funds Shifting To Equities
Investors are keenly awaiting Federal Reserve Chair Jerome Powell‘s speech this Friday at the central bank’s summer Jackson Hole, Wyo., summit. The anticipation is that Powell will indicate rate cuts in September. However, Tony Pasquariello, head of hedge-fund strategy at Goldman Sachs, has expressed skepticism about a subsequent flood of cash into stocks from money-market funds, according to MarketWatch report.
The hedge-fund strategist doubts that the $7.186 trillion currently in U.S. money-market funds, as reported by the Investment Company Institute, will be redirected to the stock market following a rate cut. He stated, “I think this suggests there’s not some unusually large …