Goldman Warns Against Being ‘Too Early’ in Fading Recession Risk
- Investors may be ‘too complacent’ on US interest-rate cut bets
- Markets still vulnerable to hawkish surprises, say strategists
This article is for subscribers only.
Investors may be getting overconfident in betting the Federal Reserve may cut interest rates sooner to bolster a flagging US economy, according to Goldman Sachs Group Inc. strategists.
“Looking at the re-pricing of cyclical assets in the US and EU, we think the market might have been too complacent too soon in fading recession risks on expectations of a more accommodative monetary policy stance,” strategists including Cecilia Mariotti wrote in an Aug. 1 note.