Aug
01
Goldman Downgrades Equities for the Next Three Months
ByThe S&P 500 to fall 10 percent over the next three months, according to the bank.
Bring in the bears.
The recent rally that’s pushed equities to all-time highs is about to hit a speed bump, according to a new note from Goldman Sachs Group Inc. In fact, the team, led by Christian Mueller-Glissmann, expects the S&P 500 and the STOXX Europe 600 to fall roughly 10 percent over the next three months.
“Given equities remain expensive and earnings growth is poor, in our view equities are now just at the upper end of their ‘fat and flat’ range,” they write. The analysts are downgrading stocks to ‘underweight’ for the next three months, while keeping their ‘neutral’ position over the next 12 months and staying ‘overweight’ in cash…
