Goldman Sachs strategist: US stocks unlikely to enter Bear Market in the next year

On November 5, Goldman Sachs Group strategists said that U.S. stocks are unlikely to enter the Bear Market in the next 12 months, and the economic recovery will continue to support the stock market. The team, led by Andrea Ferrario, believes that even taking into account the risks posed by the presidential election, there is only an 18% chance that the stock market will fall by more than 20%. After surging nearly 25% in 2023, the S&P 500 pumped another 20% this year, led by large-cap technology stocks. While bond yields moved higher this month on questions about the depth and breadth of the Fed's easing cycle and election uncertainty, evidence of a recovery in the U.S. economy has kept the rally sustained. "Equities should be able to digest higher bond yields as long as they are driven by a better economic rise," the strategists wrote in the note. "Strategists say the economic environment remains friendly despite recent signs of weakness.