David Kostin is chief U.S. equity strategist at Goldman Sachs, he warns on the strong ISM index (September ISM manufacturing index 60.8 vs 58.1 expected)
- 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"
More from Goldman Sachs on this at Bloomberg and Yahoo
--
(Note, the ISM number was out back at the beginning of this month, Kostin's report is date October 20)
