Goldman Sachs’ Kostin warns on strong ISM manufacturing index

David Kostin, Chief US equity strategist at Goldman Sachs, warned in his latest note that a strong ISM manufacturing index is traditionally followed by a dip in the US stocks.

September ISM manufacturing index arrived at 60.8 versus 58.1 expected.

Key Quotes via Bloomberg:

“Plus-60 reading of the ISM Manufacturing Purchasing Managers' Index "typically marks peak growth" and has traditionally been followed by a dip in U.S. equities

"Investors buying the S&P 500 at ISM readings of 60 or higher have gone on to suffer negative three- and six-month returns on average as economic activity slowed"

"An environment of synchronized global growth acceleration today raises the risk of coordinated global slowdown tomorrow"