Goldman Sachs Group Inc. strategists have a message of caution for investors tempted by signs of stabilization in beaten-up U.S. smaller company stocks.
Tightening financial conditions, slowing economic growth and a flattening Treasury yield curve are all likely to “pressure” returns from the Russell 2000 index relative to the S&P 500 gauge, a team led by David Kostin wrote in a note, citing in part forecasts from Goldman’s economists.
