The market rally in the past month that pushed the Dow
above 30,000 points may have just set the stage for investors’ bullish expectations into next year.
As investors cycled out of outperforming technology stocks on Wednesday, they piled into cyclicals and downtrodden sectors like energy, financials, and real estate. This coincided with a frenzied enthusiasm that pushed DoorDash
shares 86% higher in the food-delivery company’s public trading debut.
These shifts are indicative of the investor bullishness described in our call of the day from a group of strategists at Goldman Sachs, who say that “more moderate risky asset returns are likely from here, rather than an imminent risk of a sizable correction.”
Alessio Rizzi and his team at Goldman wrote that a number of positioning indicators at very bullish levels suggest a noticeable improvement in growth expectations and reduced uncertainty around a recovery in 2021.