°C
2
Min
Goldman Sachs on Monday warned that the global equity bear market is not over as the markets are yet to see a trough in the momentum of global growth deterioration, a peak in interest rates and valuations lowered to reflect a likely recession.
Global equity bear market not over yet – Goldman Sachs
Nov 21 (Reuters) – Goldman Sachs on Monday warned that
the global equity bear market is not over as the markets are yet
to see a trough in the momentum of global growth deterioration,
a peak in interest rates and valuations lowered to reflect a
likely recession.
The Wall Street investment bank expects returns to be a
“relatively low” 6% through the end of 2023 as investors focus
on the pace of monetary policy tightening and the consequent hit
to growth and earnings.
“We continue to think that the near-term path for equity
markets is likely to be volatile and down before reaching a
final trough in 2023,” Goldman Sachs said in a note.
It expects the S&P 500 index to be around the
4,000-points level towards the end of 2023, implying an increase
of less than 1% from current levels, as it sees no earning
growth.
