Goldman warns of largest US equity supply shock since 2000 in 2027

Cointime reports: Goldman Sachs’ global head of hedge fund coverage Tony Pasquariello warned that the three engines behind the four-year US equity rally — earnings growth, fund flows and the AI narrative — are all deteriorating at the margin. He said 2027 could bring the largest net equity supply shock since the dot-com bubble burst in 2000, with index volatility trending higher. Goldman expects S&P 500 EPS growth of about 18% in 2027, but flags downside risk from changes in AI capex.