Goldman Sachs Sees Resilience in the U.S. Stock Market Amid Market Instability

Goldman Sachs strategists, led by Christian Müller-Glissmann, are forecasting greater resilience in the U.S. stock market than many investors expect, suggesting a low probability of a severe recession.

Despite challenges such as higher valuations, mixed economic growth, and policy uncertainty, they believe the strength of the private sector and anticipated monetary easing will help avoid a significant bear market.

Historical trends support this view, showing that major market corrections—defined as declines of 20% or more in the S&P 500 index—have become less frequent since the 1990s. This is attributed to longer business cycles, lower macroeconomic volatility, and proactive central bank interventions.

However, the strategists maintain a neutral stance on asset allocation with a slight preference for riskier assets. This cautious optimism follows recent major sell-offs, where global equities lost over $4 trillion in a week—the largest drop in two years.

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The backdrop includes rising costs of U.S. federal debt, which now exceed $1.1 trillion annually, reaching $3 billion a day. The Federal Reserve’s interest rate hikes are contributing to these concerns.

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Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.