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Goldman Strategists Warn Risk of Stock Selloff Is Still High

  • Equities are pricing only a mild recession: Mueller-Glissmann
  • TINA replaced by TARA: There Is A Reasonable Alternative
Trading On Floor Of NYSE As Sweetgreen Releases IPO
Photographer: Michael Nagle/Bloomberg

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.”