Goldman Sachs warns stocks will tumble 18% in the next 3 months — and lays out 6 risks they think investors are ignoring
The bank sees the benchmark index closing the year at 3,000 — roughly 2% higher than its Friday close of 2,930 — as the coronavirus threat fades and the economy rebounds. Yet Goldman's forecast also reflects an 18% downside to its three-month target, with looming threats dragging the benchmark index to 2,400 by the end of the summer.
The stock market's recent surge from late-March lows is best attributed to a "fear of missing out" attitude among investors, and skepticism surrounding the rally's strength remains, Goldman added. Infection rates could grow even more as states reopen their economies. Without a vaccine, a prolonged nationwide outbreak will likely quash indexes' weeks-long rally, the analysts wrote.Goldman cited a recent call from IDEX Corp. while forecasting a drawn-out rebound. The manufacturing giant expects the US upswing will come with "fits and starts," adding that expectations of a full recovery by the fall are "crazy talk.
With the labor market taking a harder-than-expected hit, the analysts now see $115 billion in additional reserve bolstering over the next 12 months.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Italian woman returns home after 18-month African kidnappingA 24-year-old Italian woman has returned to her homeland 18 months after she was kidnapped in Kenya.
Lire la suite »
18 Kebab Recipes for the GrillI love putting skewers on the menu when I'm planning a cookout—they're infinitely variable, easy to prep ahead of time, quick to cook, and pre-portioned for easy serving.
Lire la suite »
Start Of WGA Contract Talks With AMPTP Delayed Until May 18The WGA and the AMPTP have delayed the start of their contract negotiations by a week. Their talks for a new film and TV deal, which had been set to start next week, will now begin on May 18. No re…
Lire la suite »
L.A. County reports 18 more COVID-19 deaths, 484 casesL.A. County reports 484 new cases,18 deaths. Long Beach reports 17 cases, one death. The county's coronavirus total stands at 31,694 cases, 1,531 deaths.
Lire la suite »
Coronavirus Hits Emirates Earnings as Airline Warns of Depressed Travel for at Least 18 MonthsInternational air travel will take at least 18 months to recover, Emirates Airline said Sunday, as the coronavirus pandemic contributed to a collapse in annual net profits at the carrier’s parent.
Lire la suite »