Still standing after the latest shock
Sharmin Mossavar-Rahmani, Goldman Sachs’ wealth management CIO and head of the investment strategy group, went on Bloomberg Surveillance on April 30th and basically told investors: the U.S. economy is not folding just because the headlines are loud.
Her read? The economy has been “incredibly resilient” even as the Iran war adds geopolitical stress to the tape. That’s the kind of message that makes bond traders squint and equity investors shrug — because it suggests the macro backdrop is more durable than the panic trade would imply.
Why markets care
She also pointed to two forces shaping the next leg of the market:
- Big Tech AI spending: still a giant capital-expenditure machine, which helps keep growth humming.
- Restrictive monetary policy: rates are still doing their best impression of a hand brake.
That combo matters because it creates a pretty odd setup: the economy can look sturdy even while policy stays tight and geopolitics stay messy. In other words, this isn’t a fairy tale. It’s more like the economy is running a marathon in boots.
The investor takeaway
If the U.S. keeps chugging along through war headlines and higher-for-longer rates, the market may be forced to keep pricing in a “harder for longer” reality — but not necessarily a collapse. Big picture: resilience is still the trade, even if it’s an uncomfortable one.