Goldman Sachs expects equity pullbacks to offer entry as valuations hit 20-year highs
Goldman Sachs strategists led by Peter Oppenheimer say any equity pullback could provide a buying opportunity given robust corporate earnings growth, despite valuations running above 20-year averages and uncertainty from AI disruption and Middle East conflict. Chairman David Solomon noted a surprisingly benign market reaction to the Iran war.
1. Equity Pullback Strategy
Goldman Sachs strategists led by Peter Oppenheimer recommend viewing any market decline as a buying opportunity, arguing that a deep or prolonged downturn is unlikely given strong corporate earnings growth and a supportive economic backdrop.
2. Valuation Concerns
The team highlighted that global equity valuations are trading above their 20-year historical averages, heightening vulnerability to shocks from artificial intelligence disruption or geopolitical events in energy markets.
3. Market Reaction to Iran War
Chairman David Solomon observed that financial markets have responded surprisingly benignly to the Iran conflict so far, but warned it may take weeks for effects on oil supply, inflation expectations and interest rates to fully materialize.