Goldman Sachs trader: U.S. stocks are still in a bull market, but the margin for error is quite small

Goldman Sachs top trader Tony Pasquariello (Tony Pasquariello) pointed out that in the past four decades, the Federal Reserve has had five interest rate cuts after the recession did not follow, and on average, the broader SP 500 index rose 17% in the 12 months after the first rate cut. But in the current rate-cutting cycle, U.S. GDP growth hovering at a robust 3%, the Dow and SP broader market regained its all-time highs, which makes the current stock market, especially the tech-heavy Nasdaq 100, ‘not very attractive risk/reward,’ and ‘the room for error is quite small ‘. He continues to believe that US stocks are in a bull market and that ‘the trend is still higher going forward’, but the risk/reward has come down significantly and ‘the setups are very demanding and the path will be unstable’, but the strategy of buying in the past two years when the market pulls back sharply in the future is still very effective.