But while external forces seem to be threatening markets, Dominic Wilson, senior advisor in Goldman Sachs' global markets research group, thinks investors themselves will turn recession fears into a self-fulfilling prophecy. In a note to clients late last week, Wilson wrote that the strength of the US economy has pushed markets upwards for most of the year. Investor sentiment has driven markets all year — particularly the exuberance over the potential of AI, which sent shares of a few key tech stocks higher and dragged the rest of the S&P 500 along with them. But Wilson thinks these issues are simply a "pothole" that the market will eventually recover from. If that's the case and stocks do bounce back in 2024, smart investors should position themselves now for profits later.

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Persons: Dominic Wilson, Goldman Sachs, Wilson, Americas Equity Research Steven Kron, Kron, Morgan Stanley, there's Organizations: Federal Reserve, Americas Equity Research, Wall