Goldman Sachs: US stocks unlikely to enter Bear Market

On September 10, Goldman Sachs Group strategists said that the United States stock market is unlikely to dump 20% or more because the risk of a recession is still low, and at the same time, the Federal Reserve is expected to cut interest rates. The Goldman Sachs research group, led by Christian Mueller-Glissmann, said that while U.S. stocks could fall by the end of the year due to valuation rise, mixed economic rise prospects and policy uncertainty, the chances of equities entering the Bear Market are slim because the United States economy is supported to some extent by a “healthy private sector.” In addition, a historical analysis by strategists shows that since the 90s, the S&P 500 has fallen by more than 20% less often due to prolonged business cycles, macroeconomic volatility drops, and Central Bank’s “buffers.” They remain tactically neutral in terms of asset allocation, but are “dovish in support of the risk view” over a 12-month horizon.