Goldman Sachs (NYSE:GS) Says Equities More Bullish than Credit Markets
Goldman Sachs (NYSE:GS) released a report today saying the equity market for companies in the S&P 500 are considered more bullish this weak, after markets viewed them as bearish last week.
Suggestions from Goldman were investors should look at buying put spreads on the Industrial SPDR ETF (NYSE:XLI), as a way to take advantage of the discrepancies in risk between credit and equities.
The Goldman report also looked differences between what was driving concerns of the equity and credit markets.
Equity markets had more worry over risks related to the Energy and Materials sectors, while credit and options market had more fears about the Industrials and Discretionary sectors, so were focusing their attention there.
In other Goldman Sachs news, the company has evidently reversed course on its promise to battle the fraud charges from the SEC. News that the SEC has offered Goldman an additional 60 days to respond to the charges by filing a motion to dismiss or defend the charges.
The move by the SEC implies they’re open to settling the case, which reports are Goldman have been pressing them to do.
Endless media reports seem to have pressured Goldman to take the steps, as investors and those they do business with are getting a little nervous over the ordeal.
It’s probably in the best interests of CEO Lloyd Blanfein as well, with some believing the ongoing negative press, some of which his responses have been accountable for, has put pressure on the CEO concerning retaining his job.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.