Economics
Goldman Has Four Reasons the Pullback in Stocks Doesn't Signal Recession
Praying that things don't get worse.
Are We Close to a Global Recession?
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The S&P 500 is having one of its worst starts to the year ever, and while a number of big name investors say there's plenty of more room to fall, economists at Goldman Sachs are arguing that the equities rout doesn't necessarily signal a coming recession in the U.S..
Their argument strikes at the heart of the recent debate over whether a slump in corporate earnings—the so-called earnings recession—will develop into a full-blown U.S. economic retreat. The Goldman team, led by Elad Pashtan, posits that even after $1.6 trillion has been wiped off the market value of the S&P 500 index in the first dozen trading days of the year alone, there's no reason to panic about the wider economy—at least, not yet.