Goldman Strategists See Stock Returns Staying ‘Fat and Flat’ Over Next Year
- Say absolute upside for equity markets will be constrained
- Strategists expect virtually no profit growth this year
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Goldman Sachs Group Inc. strategists expect stock returns to remain mostly “fat and flat” over the next year, capped by higher-for-longer interest rates and frothy valuations.
The equity gains seen this year are in line with the late-cycle “optimism” phase that started at the end of 2022, according to Goldman, with multiples rising despite central-bank tightening and tech shares getting a boost from artificial-intelligence hype.