
Goldman Sachs Group Inc.’s trading desk is advising clients to buy shares of growth and other momentum stocks that have tumbled in recent sessions, according to a note cited on Aug. 21. The desk argues that previous episodes of sharp pullbacks in high-flying names were followed by swift recoveries, making the current decline a potential entry point. The call comes after a broad retreat in market leaders that has dented investor sentiment. Goldman’s traders say historical analysis shows that dip-buyers in similar circumstances have been rewarded, although they acknowledge that positioning remains crowded in parts of the market. Separately, a Citigroup Inc. strategist described the broader equity pullback as a “normal course of business,” suggesting that the setback does not signal a fundamental shift in the bull-market trend. The combination of Goldman's tactical recommendation and Citi’s reassurance underscores a view among major Wall Street desks that the sell-off is temporary rather than the start of a deeper correction.
Goldman Traders Say It’s Time to Buy the Dip in Momentum Stocks (Bloomberg) https://t.co/49nYU6r5Sq
Citi strategist says market pullback is just 'normal course of business' https://t.co/IYCWOoqIJX
Goldman telling traders to buy the dip in Momentum stocks. Thoughts? https://t.co/dUKIVme6Jy
