In a note headlined “Goldilocks continues to escape the bears,” Christian Mueller-Glissmann and his team at Goldman Sachs argued this morning that the stock market continues to be boosted by optimism around AI and tech companies. At the same time, investors are enjoying an environment in which the U.S. Federal Reserve is expected to deliver at least one—and maybe two—more rounds of cheaper money this year.
A Goldilocks economy is, as the name might suggest, something of a fairy-tale scenario: The economy is neither too hot (leading to rampant inflation) nor too cold (leading to slowing growth). It is, as the story goes, “just right.”
