Goldman: "The Burning Question Is What Happens In A Low Liquidity Environment When Things Wobble And There Is No Stimulus Offset"

By Bobby Molavi, Goldman trader and managing director

This is a post modern cycle in every sense of the word:

  • One where we can see rates retesting recent highs or through them….and yet markets remain calm if not buoyant.

  • One where cost of capital and debt is at decade highs….. and yet employment remains full and corporate multiples, earnings and margins remain high relative to history.

Authored by Tyler Durden via ZeroHedge July 12th 2023