Meanwhile, on the very same Friday, Brian Levine – co-head of global equity trading at Goldman Sachs – sent out an email to the investment bank’s bigger clients, in which he made a stunning prediction: the Buy the Dip Regime is now over.
In the email, first reported by the Financial Times, Levine writes that “Historically shocks of this magnitude find their troughs in panicky selling” and yet “I’ve been amazed at how little ‘capitulation selling’ we’ve seen on the desk . . . The ‘buy on the dip’ mentality needs to be thoroughly punished before we find the bottom.”