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Goldman Doesn't Fear Equity Bear Market Even as Rally Heats Up

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Financials Highlight Rally to Dow 25,000

The rally that’s set equities on fire in 2018 raises the risk of a market correction, though a bear market is unlikely, says Goldman Sachs Group Inc.

In a year that investors have kicked off with optimism over economic data and American tax reform, global stocks are trading at records, near their priciest levels in more than a decade. That’s prompted a word of caution from Goldman Sachs, which notes that the MSCI World Index and the MSCI Emerging Market Index are on their longest ever streaks without a 5-percent and 10-percent correction respectively. Still, losses are unlikely to extend into bear territory, write the strategists who remain overweight on equities as an asset class.