Goldman Sachs trader: U.S. stocks are soaring, and the market is turning a deaf ear to recession risks

A macro trader at Goldman Sachs stated that a 30% probability of a U.S. economic recession may sound like a warning signal, but global stock markets remain resilient because "shorting seems almost irrational" in the face of current market momentum.
"The key is that the market cannot see far enough into the future. This is why it tends to overlook the risks of an economic recession," Paolo Schiavone wrote in the report. He pointed out that investors may be ignoring the possibility of a slowdown in the labor market, instead focusing on strong liquidity and structural growth themes such as artificial intelligence and fiscal credit expansion