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Goldman Sees More Stock Market Losses Before Strong Recovery

  • Global stocks may drop as much as 25% from high, Goldman says
  • Equities had their worst drop since the 2008 crisis on Monday
Updated on

Goldman Sachs Group Inc. strategists expect stocks to stage a powerful recovery from their worst sell-off since the 2008 financial crisis, but only after suffering more declines first.

Global equities will likely post a drop of between 20% and 25% from their peak before rebounding, the strategists said. The MSCI All-Country World Index has so far slumped 18% from its February record high through yesterday as fears about the damage from coronavirus and oil price war sent investors rushing out of risk assets.