Goldman Sachs suggest that "following...>

MARKET TALK: Goldman Sachs suggest that "following the rebound of risky assets

last week, overall investor sentiment remains neutral overall. Options

positioning indicators are no longer signaling FOMO (fear of missing out) as

call vs put volume ratio normalised, skew became more expensive and spot/vol

correlation remains well in negative territory. Equity futures positions of

asset managers, which are more correlated with equity performance, continued to

decline last week and are still c. $90 bn below the peak reached in January. The

AAII bull vs bear survey declined again last week and dislocated further from

its relation with S&P 500 1m return. On the flip side, fund flows and CTAs funds

showed the first signs of re-risking. The large increase of money market fund

inflows stopped in the last 3 weeks. Appetite on credit remains very strong with

sustained inflows into corporate bond funds. Equity fund flows were positive as

well over the last month but turned negative last week. Lastly, with the strong

rebound of stocks, our US strategists estimate of US investor allocation in

equity increased to c. 44% (80th percentile since 1990) from the 40% reached at

the start of 2Q."