Goldman Sachs President Warns: Stock Market Plunge Far From Over
Wall Street's crystal ball looks downright apocalyptic as Goldman Sachs leadership signals more pain ahead for traditional markets.
The Institutional Reality Check
While legacy finance titans wring their hands over equity declines, crypto markets continue demonstrating their decoupling from traditional market sentiment. Another day, another reminder that centralized financial institutions remain trapped in their own cyclical narratives.
Decentralization's Defining Moment
As traditional markets stumble through their predictable patterns, blockchain assets keep charting their own course. The very volatility that frightens institutional investors represents the opportunity landscape where digital assets thrive.
Funny how the same banks that dismissed crypto now can't stop talking about market declines—almost makes you wonder if they're trying to distract from something.
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So far this month, the S&P 500 (SPY) is down over 3% (its worst-performing month since March), while volatility has increased sharply. Bob Diamond, former Barclays CEO and now head of Atlas Merchant Capital, also spoke at the forum and called the recent drop a “healthy correction,” not a sign of a larger crash. However, he did point out that high government spending and rising debt are worrying factors for markets. Diamond said that AI will likely be a long-term benefit by helping lower inflation and boost productivity, but admitted that some investors may be confused by the currently high valuations.
Waldron also discussed credit risks, especially in subprime lending to lower-income consumers, where he said underwriting standards have slipped. Still, he doesn’t expect a credit crisis as long as the economy holds steady. Apollo Global CEO Marc Rowan agreed, saying he sees no major threats to the credit system and dismissed fears of hidden problems. Meanwhile, Algebris Investments CEO Davide Serra warned of a “significant correction” and suggested that investors reduce their tech exposure.
Is SPY Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SPY stock based on 416 Buys, 81 Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SPY price target of $791.03 per share implies 19.5% upside potential.
