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."