Bad Breadth Is Long-Term Bullish: Goldman Traders See Positive Fund Flows Supporting Year-End Gains

Challenging headlines and developments on the fundamental front spurred a short window of rotation and re-evaluation, but flows have remained constructive for US equities.

Corporates are in full-fledged buyback mode providing consistent daily demand for equities.

But, as Goldman Sachs trader, Thales Arruda, notes, a strong seasonal window and positive fund flows also support a year-end rally in tandem with a seemingly insatiable retail base and systematics primarily on the sidelines for now.