Goldman Joins Wall Street Peers Flagging Rates Risk for Stocks
- Low equity risk premia make it tough to digest rate rise: GS
- Morgan Stanley, JPMorgan also see a hit to stocks from rates
This article is for subscribers only.
More and more Wall Street equity strategists are sounding the alarm on the impact of higher interest rates.
The team at Goldman Sachs Group Inc. joined peers at Morgan Stanley and JPMorgan Chase & Co. warning that elevated rates could spark further declines in equities. They pointed to the divergence between the S&P 500 stock index and 10-year real rates approaching the steepest in almost two decades, with the exception of 2020.