Goldman Sachs is seeing elevated risk of an economic downturn on the horizon, and the Wall Street firm is advising clients to hide out in stable stocks with less earnings volatility.
Goldman has called for a 35% chance of a recession in the U.S. over the next two years or so as surging inflation that is causing the Federal Reserve to raise interest rates poses a danger to the economy. In an environment of slowing economic growth and tightening financial conditions, Goldman says “Stable stocks lagged dramatically against the strong economic backdrop of the last two years”.
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