US stocks do not reflect risk well-Goldman, Morgan S points out-Bloomberg

U.S. stocks have fallen sharply earlier this year, but stocks have not yet fully reflected the risks of corporate profits and weak consumer demand, as strategists at Morgan Stanley and Goldman Sachs Group. I think.

“The equity risk premium does not reflect the increasing growth risk due to margin pressure and declining demand,” Morgan Stanley’s strategist, led by Michael Wilson, said in a report yesterday.

He also pointed out that chilling consumer sentiment poses a significant risk to US stocks and the economy as US monetary authorities continue to raise rates to eradicate inflation.

Goldman’s strategist, led by David Kostin, said the profit outlook for US companies was still too high and expected further downward revisions in the future.

“The stock valuation hasn’t dropped significantly yet,” Kostin said, although the S & P 500 Index has fallen sharply since the beginning of the year.AstonishingHigh inflation“The US financial authorities’ fight against inflation has capped stock valuations,” he said.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.