from Zero Hedge
Authored by Tony Pasquariello, Goldman’s global head of Hedge Fund sales
1. While volatility in the bond market remains suppressed, the global equity complex continues to feature pockets of high velocity (incidentally, I don’t think those statements are mutually exclusive). The story of the week was the breakout in Chinese equities, which have added $1tr of market cap since the end of June. One can argue that elements of retail fever have spread into the region — the GS basket of Asia retail favorites, GSSZRFAV, is now 77% off the March lows — with seemingly clear (if tacit) support from the government. Note that A-share volumes haven’t been this high since the equity boom-then-bust cycle of 2015 — an experience one should remember clearly — while also noting that margin balances are considerably lower today. I tend to come out where GIR’s Kinger Lau does: +15% over the next 1-3 months, but flat out one year (link).