Goldman: "The Burning Question Is What Happens In A Low Liquidity Environment When Things Wobble And There Is No Stimulus Offset"

By Bobby Molavi, Goldman trader and managing director

This is a post modern cycle in every sense of the word:

• One where we can see rates retesting recent highs or through them….and yet markets remain calm if not buoyant.

• One where cost of capital and debt is at decade highs….. and yet employment remains full and corporate multiples, earnings and margins remain high relative to history.