Goldman issues stock market warning

RT.com
26 Nov 2022, 17:33 GMT+10

The bear phase is not over yet, according to the investment bank

The current rally in global stocks is temporary, according to Goldman Sachs, forecasting a market bottom in 2023. The Wall Street bank's strategists cite "typically consistent" indicators when saying that the bear market phase is not over yet.

"We continue to think that the near-term path for equity markets is likely to be volatile and down before reaching a final trough in 2023," they wrote in a note to clients.

The investment bank noted that while valuations had fallen this year, they had mostly done so in response to rising interest rates. Goldman added that investors haven't yet priced-in earnings losses from a recession.

The strategists expect the S&P 500 index to end 2023 at 4,000 points, which is just 0.9% higher than Friday's close. Europe's benchmark Stoxx Europe 600 was projected to finish next year about 4% higher at 450 index points.

The projection follows a recent stock rally, driven by softer US inflation reading and news of easing Covid restrictions in China. In the past month alone, the Dow Jones Industrial Average was up 10.6% and the S&P 500 has climbed 6.6%. The sharp rebound since mid-October followed a volatile year for global markets as central banks embarked on aggressive rate hikes to combat surging inflation.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Moscow Inquirer.

More Information

-7 ℃

Light Snow in Moscow/Vnukovo

Europe

Section

Finland says Russia to blame for migrant crowding eastern border

HELSINKI, Finland: After Finland joined the North Atlantic Treaty Organization (NATO) earlier this year, hundreds of migrants from the Middle ...

Heavy snowfall, blizzards reported in Moldova, Romania and Bulgaria

CHISINAU, Moldova: Over the weekend, heavy snowfall and strong blizzards in Romania, Moldova and Bulgaria left one person dead and ...

EU voices optimism for Bangladesh's election: Calls for democracy, credibility

DHAKA, Bangladesh - The European Union (EU) expressed hope on Wednesday that Bangladesh would hold democratic, credible, peaceful, and participatory ...

Housing SOS: Irish ministers work to avoid potential homelessness for asylum seeker

DUBLIN, Ireland - The government has admitted that it may not be able to accommodate all asylum seekers who arrive ...

Plea in Delhi HC against non-regulation of artificial intelligence, deepfake technologies in India

New Delhi [India], December 4 (ANI): A Public Interest Litigation (PIL) has been moved in the Delhi High Court against ...

Money for Ukraine desperately needed White House

The Biden administration urges Congress to act ?immediately? to resolve the military aid deadlockThe Biden administration is "desperately" trying to ...