Higher valuations, a mixed macro outlook, and policy uncertainty raise the risk of further declines for stocks.
Yet, odds of a bear market are low amid a strong private sector and coming rate cuts, Goldman Sachs says.
AdvertisementMacro and policy uncertainty have raised warning signs for further volatility for stocks in recent weeks, but the risk of a steeper correction into bear market territory looks remote, Goldman Sachs analysts said.
According to the bank, there's an elevated risk that investors pullback amid lofty valuations, a mixed macro outlook, and policy uncertainty.
The firm's outlook comes as indexes have been rattled in recent months by volatility stemming from weaker-than-expected macro data.
Persons:
Goldman Sachs, Goldman, —
Organizations:
Service, Fed