Goldman Sachs' Pasquariello: Bull Market Has More Room Despite Post-Labor Day Risks

What Happened

Goldman Sachs' head of hedge fund coverage, Tony Pasquariello, is telling clients the bull market still has legs — even as the calendar turns toward one of the market's historically shakier stretches. Post-Labor Day trading has a reputation for choppiness: lower summer liquidity gives way to heavier volume, portfolio repositioning, and a wave of macro data that can jolt sentiment. Pasquariello's take: those risks are real, but they're not enough to derail the broader uptrend.

Why the Bullish Case Still Holds

Strategists like Pasquariello tend to lean on a mix of factors when calling for continued gains — resilient earnings, a Federal Reserve that's leaned more accommodative, and investor positioning that hasn't gotten so euphoric it's due for a hard reset. The argument isn't that risks don't exist; it's that the underlying trend (corporate profits holding up, consumer spending intact, rate-cut expectations still on the table) outweighs the seasonal noise that tends to spook traders every September.

The Post-Labor Day Wildcard

September has a well-earned reputation as the market's weakest month historically, and the period right after Labor Day often kicks off a stretch of thinner patience for bad news. Add in a fresh batch of jobs reports, inflation prints, and Fed commentary, and it's easy to see why some investors brace for turbulence. Pasquariello's framing suggests traders should expect volatility — but treat pullbacks as noise within a bull market rather than the start of something worse.

What This Means If You're Watching Your Portfolio

Calls like this matter because they shape how trading desks and asset managers position heading into a seasonally sensitive window. If Wall Street's biggest voices are leaning "buy the dip" rather than "de-risk," that tends to cushion sell-offs and keep money flowing back in after shaky sessions. It doesn't mean smooth sailing — just that the base case from one of the Street's most-watched strategists is continuation, not collapse.

The Bottom Line

Expect noise, not necessarily a reversal. Pasquariello's view is a reminder that seasonal fear and market fundamentals don't always move in the same direction — and right now, Goldman's read is that fundamentals are winning.