This on a stock market risk indicator from the investment bank, is "flashing red," says Goldman chief global equity strategist Peter Oppenheimer
The GS client report comes via a CNBC report, in brief:
- Goldman Sachs's bear market prediction tool is at an "elevated" level
- Has historically signaled a zero average return over the next 12 months
- Shows a "substantial" risk of drawdown
- is at a rare 73%, highest level since the late 1960s and early 1970s
ps. No doubt someone will get all upset over my headline, but I quite like it :-D
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Goldman's bear market indicator includes:
- the unemployment rate
- manufacturing data
- core inflation
- the term structure of the yield curve
- stock valuation based on the Shiller PE ratio