What’s Goldman Sachs’s Stance on Gary Cohn’s Resignation?
Goldman Sachs’s David Kostin in an interview with CNBC
In an interview with CNBC on Wednesday, March 7, 2018, Goldman Sachs’s (GS) chief US equity strategist, David Kostin, shared his views on the US equity market, import tariffs, Gary Cohn’s resignation, and February’s non-farm payroll.
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Goldman Sachs on Gary Cohn’s resignation
Goldman Sachs’s David Kostin believes Gary Cohn’s resignation as chief economic advisor to Trump could threaten market movement. According to David Kostin, Gary Cohn contributed significantly to various economic reforms and the passage of tax reform. Kostin believes he understands business well, has comprehensive knowledge on various regulations, and advised suitable steps to promote growth in various sectors. Kostin also said that the market might see some fluctuation due to this reason.
The SPDR S&P 500 Index (SPY) and the SPDR Dow Jones Industrial Average ETF (DIA) fell marginally on March 7, 2018, after the announcement of Gary Cohn’s resignation. These ETFs fell 0.12% and 0.33%, respectively, on that day.
Cohn resigned after President Trump’s announcement of import tariffs on steel and aluminum on March 1, 2018, which suggest that he isn’t in favor of Trump’s tariffs proposal. The CBOE Volatility Index (VIX), which is also known as the fear index, has been falling gradually since March 1, 2018.
In the next part of this series, we’ll analyze how Goldman Sachs views Trump’s tariff proposal.