Seeking Alpha

Goldman goes underweight U.S. stocks

  • Goldman's global portfolio strategy team gets tactically bearish for the first time in awhile, downgrading U.S. equities to underweight vs. other stock markets.
  • "Over 3 months our conviction in equities is now much lower as the run-up in prices leaves less room for unexpected events. Still, we remain overweight (global equities), as near-term risks have also declined."
  • "The U.S. market's high valuations and margins leaves it with less room for performance than other markets, in our view."
  • Goldman's' U.S. strategists have called the S&P 500's valuation "lofty by almost any measure ... we conclude that further P/E expansion will be difficult to achieve."
  • S&P 500 ETFs: SPY, IVE, SH, SSO, SDS, IVV, SPXU, UPRO, VOO, RSP, RWL, EPS, IVW, SPYG, RPG, RPV, SPYV, BXUB, VOOG, VOOV, TRND, BXUC, SFLA, FTA, BXDB
Comments (3)
  • Seppo Sahrakorpi
    , contributor
    Comments (1874) | Send Message
     
    I wonder who is buying in the resulting dip :)
    13 Jan, 09:21 AM Reply Like
  • La Rue
    , contributor
    Comments (678) | Send Message
     
    Bingo, we have a winner !
    13 Jan, 10:03 AM Reply Like
  • mostserene1
    , contributor
    Comments (3330) | Send Message
     
    S&P PE is now 17, a tad overvalued, but some stocks are trading at a discount to the market. For dividend investors, there are still some 4% plus dividend yield blue chips.
    21 Jan, 12:15 PM Reply Like
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