Goldman Sees Risk of Stock Decline on Rising Bond Yields

Global equities and bonds may retreat in the next three months, with stocks at risk of a brief selloff, as rising inflation boosts yields, according to a quarterly strategy report by Goldman Sachs Group Inc.

The bank cut its rating on stocks to neutral, the equivalent of hold, for the next three months, a note to clients from its portfolio strategy group showed. Goldman Sachs also lowered corporate credit to underweight and predicted that government bond yields will increase.