Goldman Sachs concerned by how quickly market confidence has recovered [Video]

The speedy return of market confidence following a dramatic global sell-off in risky assets should be seen as a cause for concern, according to the head of asset allocation research at Goldman Sachs.

Speaking to CNBC’s “Squawk Box Europe” on Wednesday, Goldman’s Christian Mueller-Glissmann said investors could think about the early August stock slump as something akin to “a warning shot.”

Stock markets kicked off the month under intense pressure, as concerns over a possible U.S. recession and the unwind of popular “carry trades” linked to the Japanese yen pulled stocks off their record levels. The S&P 500 lost 3% on Aug. 5, notching its biggest one-day drop since 2022.

Since then, however, expectations of imminent interest rate cuts from the Federal Reserve and improving U.S. economic data have sent stocks soaring. The S&P 500 has jumped 8% …