Goldman Sachs Says Stock Markets Still Don’t Reflect Recession Risks – Bloomberg

Equity markets have yet to reflect the risks of a U.S. recession, and strategists at Goldman Sachs Group Inc.

Goldman’s Christian Muller-Grismann, Cecilia Mariotti and others’ models suggest a 39% chance of a U.S. economic growth slowdown over the next 12 months, but only an 11% chance is priced in by risk assets. %. “This increases the risk of further recession fears next year,” it said in a report Wednesday.

Deutsche Bank’s Binky Chadda said a recession would start, with the S&P 500 index falling 19% from current levels to 3,250 in the third quarter of next year, before recovering in October-December. expected.

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