Goldman’s Molavi Says Bull and Bear Stock Drivers Set to Clash

Goldman Sachs Group Inc. macro trader Bobby Molavi likens the setup for stocks heading into the new year to a boxing match, where the bullish drivers of AI and stimulus measures confront bearish forces including stretched valuations and credit stress.

As the S&P 500 index closes in on a third consecutive year of double-digit gains, Molavi estimated that some $600 billion of capital spending from the Magnificent Seven tech megacaps is heading for the US economy. There’s also talk of income tax cuts and $2,000 stimulus checks lining up in the bull corner — and Molavi sees more positives supporting bulls’ views.