Goldman Drops Strong Balance Sheet Recommendation on Dovish Fed

Goldman Sachs Group Inc. is no longer advising an investment strategy for near-term returns it has held for the past two years.

Because of a more dovish Federal Reserve, stabilizing economic growth and stretched valuations, the bank is closing its recommendation to buy stocks of companies with strong balance sheets. They outperformed those of firms with weak balance sheets since the Fed began its interest-rate increases at the end of 2016.