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 0.6% below our strategists’ end-2020 target).

As a result, the short-term asymmetry in some asset classes looks poor. Investors may see better entry points for pro-cyclical trades.

For the time being, macro investors should stick with carry-oriented structures