The investment bank is not keen on stocks for the next quarter
- Equities remain expensive
- Earnings growth is poor
- In our view equities are now just at the upper end of their 'fat and flat' range"
- Have downgraded stocks to 'underweight' for the next three months,
- 'Neutral' position over the next 12 months
- "Overweight' in cash
- Goldman Sachs' proprietary indicator of risk appetite is now turning, indicating tougher times ahead for stocks without a more favorable macro environment
- "Our risk appetite indicator is near neutral levels and its positive momentum has faded, suggesting positioning will give less support and we will need better macro fundamentals or stimulus to keep the risk rally going, but market expectations are already dovish and growth pick-up should take time," they write.
Bloomberg for more
Market Watch for more also
I'd add the 'Yellen call' to reasons to be cautious. But, what say the habitual Goldman Sachs faders? Does this mean its buying time in stocks for the next 3 months?
