One week ago, when Goldman's flows guru Scott Rubner - the bank's equivalent to BofA's Michael Hartnett - was fielding a barrage of client and investor calls seeking clarity if the all-clear signal to buy stocks had arrived, his answer was "no", but with a caveat: "green shoots are forming."
And while one wouldn't know it looking at today's market action, a sharp reversal of the squeeze from the past few days, in his latest Tactical Flow of Funds note (available to pro subs), Rubner again responds to the question asked by impatient bulls, "are we there yet" (i.e., is the time to buy here), and this time his answer is "Yes, I think we are."
Below we excerpt from his note (full report available to pro subs), which begins with two bullish warnings i) that there is a supply and demand mismatch in equities and bonds, and ii) the flow-of-funds market technicals quickly shift from a headwind to a tailwind into the second half of October and rest of Q4.
