Goldman Sachs Strategists Say Stocks Unlikely to Sink Into Bear Market
- See risk of selloff in near term on valuations, growth outlook
- But low recession odds to support equities over longer term
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US equities are unlikely to slump 20% or more as the risk of a recession remains low against expected interest-rate cuts from the Federal Reserve, according to Goldman Sachs Group Inc. strategists.
The team led by Christian Mueller-Glissmann said while stocks could decline into the year end — hurt by higher valuations, a mixed growth outlook and policy uncertainty — the odds of an outright bear market are slim as the economy is also in part being supported by a “healthy private sector.”