Trend followers unlikely to nudge stocks this week: Goldman
In short
Trend-following investors are expected to stay relatively quiet rather than pushing equity indices during the current trading week. Analysis from Goldman Sachs indicates that this specific group will not significantly alter the trajectory of the broader stock market. Consequently, overall equity movements are less likely to be influenced by systematic adjustments from these particular market participants.
Key points
- Algorithmic and trend-following strategies are unlikely to generate notable market moment…: Algorithmic and trend-following strategies are unlikely to generate notable market momentum this week.
- Equity pricing will face minimal directional pressure from automated trend-tracking inves…: Equity pricing will face minimal directional pressure from automated trend-tracking investment groups.
- Investors should anticipate little systemic disturbance from trend followers according to…: Investors should anticipate little systemic disturbance from trend followers according to the bank's outlook.