Goldman Sachs Shorts the U.S. Dollar as World Economies Restart
Goldman Sachs (NYSE: GS) said in a note it sent out this weekend that it is making bets against the U.S. dollar, under the theory that signs of economic recovery will induce investors to shift their funds away from the safety net of the dollar and back into the stock market.
Thus far during the COVID-19 pandemic, many nervous U.S. investors have been sheltering their funds in cash accounts, lifting the deposit levels in U.S. banks. As the situation changes, they may begin to feel more sanguine about the prospects of equities again.
While the authors of the note pointed out that Goldman Sachs' strategists don't see any immediate concerns for the dollar, there are positive signs in the European markets that make now an attractive time to make a move. The update noted the "steady reopening process, limited evidence of a pickup in Covid infection rates, and encouraging policy actions like progress on the EU Recovery Fund," referring to the 750 billion euro program the union created to boost the multinational zone's economy.
Source Fool.com
