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Goldman Sachs: US equity bottom conditions are not there yet
None of the US assets tracked by Goldman are fully pricing in a recession, with equities factoring in the lowest odds of a “severe hawkish scenario,” the strategists wrote.
By Abhishek Vishnoi
(Bloomberg) — Goldman Sachs Group Inc. strategists said conditions for a trough in US equities are not visible yet as the asset class doesn't fully reflect the latest rise in real yields and odds of a recession.
"US equity valuations do not yet offer a historically large premium to the real returns on offer from bonds and cash," strategists including Kamakshya Trivedi wrote in a note dated Oct. 25. There can be "significant downside if a proper recession occurs or geopolitical risks in Ukraine or elsewhere intensify," the note said.
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