Goldman Sachs is about to release earnings. Ponder this Bear Case Scenario.
Goldman Sachs is being regulated into a more conservative capital structure. Supposed less risk means lower returns to investors. This risk junkie is addicted to volatile beta. They do not want a buy and hold market.
The next melt down will tell just how wise Goldman Sachs has been. Wisdom takes time Goldman Sachs needs to have enough sucker customers to stuff with bad transactions.
Interest rates are the wild card. They move in surprising fashions. There is only one trend left to sample. Rising interest rates which will drop the bond valuations. Can Goldman Sachs short enough to make a buck and then for how long.
George Gutowski writes from a caveat emptor perspective.