Goldman Has "Aggressively" And Quietly Liquidated A Quarter Of Its Equity Investments

zerohedge2021-07-14

While most analysts and traders were digging through Goldman's investment banking and trading results - of which the former came in stellar while trading, especially in FICC, was mediocore... ... ...

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Comments

ECA
2021-07-14
ECA
Hmmmm
Sumei
2021-07-14
Sumei
Sounds like GS was preparing for a correction in the market. So they sold a big part of their holdings in Q2 likely prior to the correction. Would this mean that they are looking to pick up if and when the next correction takes place? The market as it is seems to be heading for a high towards earnings season. Or has that already been factored in and a huge catalyst is needed for the next big bump up?
cuteypie
2021-07-14
cuteypie
Wolves of Wall Street
Yangie
2021-07-14
Yangie
Must buy
- YPT:
  Which
WayneSing
2021-07-14
WayneSing
good read… consider investing now
richcat
2021-07-14
richcat
??

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Here the bank pulls no punches, making it clear in the title that it has been busy \"harvesting\" its balance sheet equity portfolio. Which, of course, is another word for selling.\nWhat is even more remarkable is just how much Goldman has harvested so far in 2021: as shown below, having started with a $20BN equity portfolio which has enjoyed a $5BN increase in market prices,Goldman dumped a whopping $5.5 billion of its equity assets so far (excluding a modest $1.5BN in purchases) or more than a quarter of its entire portfolio as of Dec 31.\n\nWho is Goldman selling to? Anyone who will buy, but here we would wager thatretail investors - who have been on tilt buying in 2021 - have been the proud recipients of billions in Goldman sales.This, in the financial literature is called the \"distribution phase.\"\nThe sales were so extensive that the topic was brought up on Goldman's earnings call earlier today. In response to a question about Goldman's efforts to reduce its equity investment portfolio, the bank said that it it has \"made progress on improving its capital efficiency and is moving 'aggressively' to manage equity positions, especially since the environment is supportive.\"\nWhat does that mean in English? Simple: Goldman is \"aggressively\" dumping its positions in an environment that is \"supportive\", i.e., in which the dumb money is providing a constant bid into which whales such as Goldman can sell.\nThe last time Goldman was \"aggressively\" selling into a \"supportive\" market? Well, we have to go back all the way to 2007 and 2008 when Goldman was busy creating the very CDOs which its prop desk would then \"aggressively\" short. We all remember how prophetic that particular move turned out to be...\nRelated:\n\nGoldman Sachs: Q2 GAAP EPS of $15.02beats by $5.07.\nRevenue of $15.39B (+15.7% Y/Y)beats by $3.22B.\nReversal of credit losses of $92M.\nOn July 12, 2021, the Board of Directors of The Goldman Sachs Group, Inc. approved a 60% increase in the quarterly dividend to $2.00 per common share beginning in the third quarter of 2021.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":144036128,"gmtCreate":1626252079664,"gmtModify":1703756375212,"author":{"id":"3583583162782511","authorId":"3583583162782511","name":"ECA","avatar":"https://static.tigerbbs.com/718eae234a49daca134efd37f092acb0","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Hmmmm","listText":"Hmmmm","text":"Hmmmm","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/144036128","repostId":1133459947,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":145726739,"gmtCreate":1626247938221,"gmtModify":1703756290607,"author":{"id":"3566259831309087","authorId":"3566259831309087","name":"Sumei","avatar":"https://static.tigerbbs.com/ae0a2af1baf6b07a87ffdf41ea17959a","vip":1,"crmLevel":6,"crmLevelSwitch":0},"htmlText":"Sounds like GS was preparing for a correction in the market. So they sold a big part of their holdings in Q2 likely prior to the correction. Would&nbsp;this&nbsp;mean that they are looking to pick up if and when the next correction takes place?&nbsp;The market as it is seems to be heading for a high towards&nbsp;earnings season. Or&nbsp;has that already been factored in and a huge catalyst is needed for the next big bump up?&nbsp;","listText":"Sounds like GS was preparing for a correction in the market. So they sold a big part of their holdings in Q2 likely prior to the correction. Would&nbsp;this&nbsp;mean that they are looking to pick up if and when the next correction takes place?&nbsp;The market as it is seems to be heading for a high towards&nbsp;earnings season. Or&nbsp;has that already been factored in and a huge catalyst is needed for the next big bump up?&nbsp;","text":"Sounds like GS was preparing for a correction in the market. So they sold a big part of their holdings in Q2 likely prior to the correction. Would this mean that they are looking to pick up if and when the next correction takes place? The market as it is seems to be heading for a high towards earnings season. Or has that already been factored in and a huge catalyst is needed for the next big bump up?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/145726739","repostId":1133459947,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":145716090,"gmtCreate":1626245235110,"gmtModify":1703756244923,"author":{"id":"3546519093286207","authorId":"3546519093286207","name":"cuteypie","avatar":"https://static.tigerbbs.com/324f57345522368552a82de3cf71ed5f","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"Wolves of Wall Street&nbsp;","listText":"Wolves of Wall Street&nbsp;","text":"Wolves of Wall Street","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/145716090","repostId":1133459947,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":145440964,"gmtCreate":1626240683658,"gmtModify":1703756165414,"author":{"id":"3582779426446979","authorId":"3582779426446979","name":"Yangie","avatar":"https://static.tigerbbs.com/7aa57400229f182eb5fabc5e93a856b8","vip":1,"crmLevel":1,"crmLevelSwitch":0},"htmlText":"Must buy","listText":"Must buy","text":"Must buy","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/145440964","repostId":1133459947,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5214901,"gmtCreate":1626241107883,"gmtModify":1631889717779,"authorId":3579838075158745,"author":{"id":3579838075158745,"authorId":3579838075158745,"name":"YPT","avatar":"https://static.tigerbbs.com/10baea998b9915ab14ba326ad1c4a2a6","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":145440964,"type":1,"supId":0,"prevId":0,"content":"Which","text":"Which","html":"Which"}],"langContent":"EN"},{"id":145423845,"gmtCreate":1626239093087,"gmtModify":1703756140609,"author":{"id":"3584427442291849","authorId":"3584427442291849","name":"WayneSing","avatar":"https://static.tigerbbs.com/9ba5be2ddf8347d41eed59a863adfe57","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"good read… consider investing now","listText":"good read… consider investing now","text":"good read… consider investing now","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/145423845","repostId":1133459947,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":145429434,"gmtCreate":1626239069228,"gmtModify":1703756139635,"author":{"id":"4089010991436220","authorId":"4089010991436220","name":"richcat","avatar":"https://static.tigerbbs.com/68e4b3561331a0d9fe709291122e6cea","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"??","listText":"??","text":"??","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/145429434","repostId":1133459947,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":247,"commentSize":21,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1133459947"}