Goldman Raises Near-Term Global Stock View as Earnings Outlook Holds
The bank moved its three-month stock stance to overweight, expecting profits to support markets despite risks from rates and energy prices.
Key takeaways
- Goldman raised its three-month view on stocks to overweight from neutral.
- Goldman expects stocks to top analysts’ forecast for S&P 500 profit growth.
Goldman Sachs strategists raised their three-month view on global stocks to overweight from neutral, citing a healthy profit outlook. The change aligns with their bullish 12-month stance, according to a note led by Christian Mueller-Glissmann.
Analysts expect S&P 500 companies to post a 25% increase in third-quarter profits from a year earlier, according to Bloomberg Intelligence data. Goldman’s team expects stocks to surpass that forecast.
The strategists remain overweight on Asia and the US, and underweight on Europe. They identify higher interest rates and energy prices as near-term risks, with the US midterm elections also a possible source of volatility.
This article was produced with the help of AI technology. Source: Yahoo Finance