Goldman Sachs Says Stay Away from Stocks for the Next Three Months

Rating on global equities cut to ‘underweight’ over 3 months

by Victor Reklaitis
Market Watch

Goldman Sachs strategists have cut their rating on global stocks to “underweight” over a three-month horizon, citing pricey valuations and poor earnings growth.

The bank’s gauge for how investors are feeling about stocks and other riskier assets also isn’t inspiring confidence, said Goldman strategists Christian Mueller-Glissman, Ian Wright and Peter Oppenheimer in a note dated Sunday.

“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,” they wrote in the note. “But market expectations are already dovish, and growth pick-up should take time.”

The strategists aren’t totally throwing in the towel.

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