Goldman Sachs Favors Stocks Over Credit Over Next 12 Months as Late-Cycle Risks Rise
JH Kim
Summary
- Goldman Sachs said it favors stocks over credit assets over the next 12 months and recommended increasing exposure to equities.
- Goldman Sachs said solid corporate earnings, economic growth, and low odds of a US recession will support the stock market.
- Goldman Sachs warned about high bond yields, fiscal concerns, and inflation, and recommended portfolio diversification through low-volatility stocks, high-dividend shares, gold, and real assets.
Forecast Trend Report by Period
Goldman Sachs favors stocks over credit over the next 12 months as risks tied to the late stage of the economic cycle increase.
Walter Bloomberg reported on September 2 that Goldman expects solid corporate earnings, slowing but resilient economic growth, and low odds of a US recession to support equities. The bank recommends an overweight position in stocks and an underweight stance on credit assets.
It also said higher bond yields, fiscal concerns and stubborn inflation could limit further gains in the stock market.
To guard against those risks, Goldman recommended diversifying portfolios with low-volatility stocks, high-dividend shares, gold and real assets.
JH Kim
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