RT.com
26 Nov 2022, 17:33 GMT+10
The bear phase is not over yet, according to the investment bank
The current rally in global stocks is temporary, according to Goldman Sachs, forecasting a market bottom in 2023. The Wall Street bank's strategists cite "typically consistent" indicators when saying that the bear market phase is not over yet.
"We continue to think that the near-term path for equity markets is likely to be volatile and down before reaching a final trough in 2023," they wrote in a note to clients.
The investment bank noted that while valuations had fallen this year, they had mostly done so in response to rising interest rates. Goldman added that investors haven't yet priced-in earnings losses from a recession.
The strategists expect the S&P 500 index to end 2023 at 4,000 points, which is just 0.9% higher than Friday's close. Europe's benchmark Stoxx Europe 600 was projected to finish next year about 4% higher at 450 index points.
The projection follows a recent stock rally, driven by softer US inflation reading and news of easing Covid restrictions in China. In the past month alone, the Dow Jones Industrial Average was up 10.6% and the S&P 500 has climbed 6.6%. The sharp rebound since mid-October followed a volatile year for global markets as central banks embarked on aggressive rate hikes to combat surging inflation.
READ MORE: Chinese stock market awakens
Goldman's analysts expect Asian stocks to outperform next year, with the MSCI Asia-Pacific excluding Japan ending the year 11% higher at 550 points.
For more stories on economy & finance visit RT's business section
Get a daily dose of Cardiff Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Cardiff Star.
More InformationLONDON, England: Flybe, a British regional airline, abruptly closed operations on January 28. The airline offered flight to Belfast, Birmingham ...
LONDON, England: Of the 14 main battle tanks and additional artillery support it will send to Ukraine, Britain hopes its ...
The Los Angeles Thieves won two elimination-bracket matches on Friday to stay alive in the Call of Duty League Major ...
Kurt Kitayama made two late birdies to slide into the lead at the Pebble Beach Pro-Am on Friday in Pebble ...
The United States moved to the brink of advancing out of its Davis Cup qualifying series by winning both singles ...
London [UK], February 4 (ANI): An Indian-origin man, who broke into Windsor Castle in 2021 with a loaded crossbow and ...
WASHINGTON D.C.: The Biden administration has stopped issuing export licenses to US companies seeking to ship most items to China's ...
Nearly a year in, the war in Ukraine has cost tens of thousands of lives and brought the world to ...
WASHINGTON D.C.: The US House of Representatives has passed a bill that limits the ability of US Energy Secretary Jennifer ...
BOSTON, Massachusetts: Russian businessman Vladislav Klyushin, who has ties to the Kremlin, has been accused of making tens of millions ...
TOKYO, Japan: In light of a tense security environment following Russia's invasion of Ukraine and Moscow's growing military cooperation with ...
DALLAS, Texas: Oil and gas pipeline operators are preparing to stockpile equipment following severe weather forecasts for the next few ...