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Goldman Says It's Time for Equity Investors to Boost Their Cash

  • Base case sees a modest 5% gain in S&P 500 Index next year
  • Goldman’s downside case has the S&P 500 down 7% by end-2019
Views Of The Federal Reserve As The Federal Open Market Committee Begins Its Two-Day Policy Meeting
Photographer: Andrew Harrer/Bloomberg

Stock investors have had a great run in recent years, but with cash now offering positive inflation-adjusted returns, it may be wise to dial back on risk, according to Goldman Sachs Group Inc.

“Mixed-asset investors should maintain equity exposure but lift cash allocations,” Goldman strategists led by David Kostin wrote in a Nov. 19 report. “Cash will represent a competitive asset class to stocks for the first time in many years.”