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 Hong Kong Herald.

More Information

21 ℃

Partly Cloudy in Hong Kong Intl

China

Section

Myanmar ethnic group alliance captures trade gate on Chinese border

NAYPYIDAW, Myanmar: Kyar Win, spokesperson for the Myanmar National Democratic Alliance Army, which launched a surprise offensive last month against ...

China pledges to deepen bilateral trade relations with Vietnam

BEIJING, China: The country's commerce ministry said that during a meeting with Vietnamese Prime Minister Pham Minh Chinh in Ho ...

Survey nominates world's most expensive cities

Singapore, Zurich, and New York topped the Economist magazine's ranking this yearSingapore and Zurich are the world's most expensive cities ...

Philippines: China Executed 2 Filipinos Convicted of Drug Trafficking

MANILA, PHILIPPINES - China has executed two Filipinos for drug trafficking despite high-level Philippine government appeals to commute their death ...

One App To Rule Them All: Coming Soon To Russia's Internet

You'll be able to pay your taxes. You'll be able to share, and like, cute cat videos. You'll be able ...

Give weapons-industry money to the hungry Pope Francis

The pontiff also told the COP28 summit that ?the destruction of the environment is an offense against God?The Pope has ...

Business

Section