Goldman Sachs: Hedge fund gross and nets increased last week to reach:

1. Gross leverage of Equity L/S funds: 85th percentile one-year

2. Nets of L/S: 97th percentile

3. Gross leverage of the overall GS PB book: 98th percentile

4. Net leverage of overall book: 93rd percentile

White House & S&P 500: The White House Administration is aiming to showcase a middle-class tax reduction plan by September. The timing for the to be outlined tax stimulus program will likely have some input from the stock market’s performance. Should the stock market and/or economy show themselves to falter to any significant degree, we believe…[Read more]

We (GS) see a number of reasons for some near-term caution:

(i) the high degree of uncertainty about the size of duration of the corona disruptions and their implications for incoming data

(ii) limited expected policy support by major central banks

(iii) high absolute valuations for domestic stocks (as of yesterday’s close, the S&P 500 was just…[Read more]

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