Goldman's Flood Says Recent Share Sales Signal 'Healthy' Market

Summary

John Flood, a Goldman Sachs partner, argues that recent mega-cap share sales signal a healthy market with robust institutional demand. He views Friday's S&P 500 selloff as a buying opportunity and expects the index to reach 8000 this year. Flood highlights a disconnect between retail and institutional investors, with institutional positioning still neutral, leaving room for further gains. He also notes value in memory, Korea, and Taiwan, but employment trends are key for retail participation.

• John Flood says recent share sales indicate a healthy supply-demand dynamic in equity markets.
• Institutional investor demand for offerings is at record levels, with discipline still present.
• Flood views Friday's 2% S&P 500 selloff as a buying opportunity, with dips historically paying off.
• The S&P 500 has a clear path to 8000 and beyond this year according to Goldman Sachs.
• Positioning is not overextended; hedge funds are hedged and mutual funds hold average cash levels.
• Retail investors continue to buy equities, with the bid only disappearing during job losses.
• Memory sector is seen as fairly priced with high momentum, though no specific ticker is named.
• Korea and Taiwan offer value with fundamental support, but no specific investable expression is given.