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

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Comments (3)
  • Seppo Sahrakorpi
    , contributor
    Comments (2146) | Send Message
     
    I wonder who is buying in the resulting dip :)
    13 Jan 2014, 09:21 AM Reply Like
  • La Rue
    , contributor
    Comments (900) | Send Message
     
    Bingo, we have a winner !
    13 Jan 2014, 10:03 AM Reply Like
  • mostserene1
    , contributor
    Comments (3697) | 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 2014, 12:15 PM Reply Like
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