Goldman Sachs Bank representative Tony Pasquariello believes that the worst part of the sell-off in global markets is over, but stressed that investors should still be vigilant, reports Reuters.
In a statement to the bank's clients, Goldman Sachs' global head of hedge funds described the sell-off earlier in the week as "a global call for investors to hedge their investment accounts."
"The worst part of forced risk reduction is over, but I think the risk of a further sell-off is still higher." It's hard for me to definitively say what the current risk/reward ratio is in the case of the S&P500 index, so I wouldn't stick to firm bets in any direction and try to make money from the nuances of the market," said Tony Pasquariello.
In his opinion, the large futures market players and funds focused on volatility management will remain on the supply side for some time.
"I suspect that individual investors will not regain confidence until a clear upward trend is established," wrote Tony Pasquariello.
The broad U.S. stock market index S&P 500 has fallen nearly 6 percent so far in August amid a sell-off on fears of a U.S. economic slowdown and a slew of weak macroeconomic data. So far this year, the index has fallen only in April, when its value decreased by 4.2 percent.
