Goldman Sachs believes equities should remain overweight in the near term as corporate earnings stay strong and interest rates stabilize. The bank nevertheless recommends keeping clients overweight cash for the next three months to withstand coming volatility. Christian Mueller-Glissmann cited AI concerns, the midterm elections and Middle East tensions as risk factors, with limited support from bonds. The S&P 500 has fallen 2.4% over the past month, while Nvidia, Meta Platforms and Alphabet have each lost more than 10%, and the Nasdaq-100 has entered correction territory with a decline of more than 10% from its record close. Easing AI concerns, lower interest rates or a further fall in Goldman Sachs’ risk-appetite indicator could nevertheless support equities toward year-end.
Source: Read the original article
