The risk of a renewed selloff in equity markets is still high as investors are only pricing a mild recession, according to Goldman Sachs Group Inc. strategists.
“Much of the valuation de-rating this year has been due to higher rates/inflation,” strategists led by Christian Mueller-Glissmann wrote in a note dated June 30. “Unless bond yields start to decline and buffer rising equity risk premiums due to recession fears, equity valuations could decline further.”
