Goldman Sachs Sees US Stock Gains Cooling, Keeps Buy-the-Dip Call
Summary
- Goldman Sachs said US stock returns may slow, but it is maintaining an overweight on equities over the next 12 months.
- Goldman Sachs said expanding AI investment and improving tech earnings are supporting stocks, and recommended a buy-the-dip strategy during market corrections.
- Goldman Sachs said high Treasury yields, rising energy prices and overly optimistic investor sentiment are factors behind short-term correction risks and higher volatility.
Forecast Trend Report by Period
Goldman Sachs said gains in US stocks may moderate after a recent strong rally. Still, it maintained its 12-month overweight call on equities and recommended buying on market pullbacks.
Walter Bloomberg reported on June 4 that Goldman Sachs strategist Christian Mueller-Glissmann said the market had rebounded to near record highs, helped by improving earnings at technology companies and rising investment in artificial intelligence.
He added that high Treasury yields, rising energy prices and overly optimistic investor sentiment are raising the risk of a short-term correction.
Still, the macroeconomic backdrop remains supportive even if volatility increases, he said. Earnings growth and expanding AI-led capital spending should continue to support stocks.
Goldman Sachs therefore maintained its overweight stance on equities for the next 12 months and recommended buying during market corrections.
The market has been lifted recently by expanding AI investment and improving earnings at technology companies, though higher interest rates and oil prices could increase short-term volatility.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
