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

More here at CNBC

ps. No doubt someone will get all upset over my headline, but I quite like it :-D

--

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