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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

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.