A Goldman Sachs analyst on US equities – not looking for a pullback despite the high market concentration. Goldman Sachs expects a resilient economy and softening inflation will continue to be supportive of stocks.
“As our US strategists have shown, periods of high market concentration and momentum outperformance have generally been followed by ‘catch-up’ rather than ‘catch-down’ episodes, supported by better macro,”
“While equity momentum has somewhat supported broader risk appetite … we see limited implications of a continued reversal barring a material US rate shock,”
GS says the preference is to buy any dip in equities, remains overweight equities, but is wary of limited upside in the near term.