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The Daily Hodl 2025-07-30 07:04:46

Goldman Sachs Warns of Froth in US Equities Amid Meme Stock Mania, Says Now’s the Time To Get Defensive

Kunal Shah, Goldman Sachs International’s co-CEO and the global co-head of the fixed income, currency, and commodities business, is issuing a warning on the US stock market. In a new Goldman Sachs podcast, Shah says that despite a risk asset rally in the US and strong fundamentals supporting the uptrend, the “technicals” do not show an optimistic outlook going forward. “The risk asset rally, particularly in the US, has been fierce. That recovery from April when we had all that chaos has been strong. I think it’s been pretty well grounded, earnings have been exceptionally strong. You’ve got the undercurrent of deregulation on its way. Obviously, the AI theme…. I would say that the rally thus far has its strong underpinnings. But I do think the technicals from here are less compelling. There was just a big re-risking from April, retail bought the dip, but our institutional clients definitely got defensive and they had to just chase that rally. But I think a lot of that underweight has been covered. The systematic buying, some of the best of that is behind us. The corporate buying, some of the best of that is behind us too. So I don’t think the technicals are as favorable from here.” According to Shah, the signs of a meme stock mania amid “flashpoints of froth” in the market are making him a “little bit more cautious.” “Now again, these kind of overshoots can persist for some time. I’m not saying the structural undercurrents aren’t still positive. But I do think it is an opportune time to get a bit more defensive.” A recent Reuters report cited department store chain Kohl’s, real estate flipper Opendoor Technologies, camera maker GoPro and restaurant chain Krispy Kreme as some of the equities that have poor fundamentals but are nonetheless rallying, driven by social media hype. Follow us on X , Facebook and Telegram Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: DALLE3 The post Goldman Sachs Warns of Froth in US Equities Amid Meme Stock Mania, Says Now’s the Time To Get Defensive appeared first on The Daily Hodl .

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