SPY•Goldman Sachs upgraded its three-month view on global equities to overweight from neutral, citing supportive earnings growth and more attractive valuations ahead of third-quarter earnings.
Goldman Sachs said a recent pullback has made equities a more attractive entry point ahead of third-quarter earnings, bringing its three-month outlook into line with its bullish 12-month stance. It remains overweight on Asia and the US and underweight on Europe.
The bank identified higher rates and energy prices as near-term risks, and said US midterm election uncertainty could increase market volatility. It prefers a barbell strategy combining technology stocks with bond-like equities, and upgraded its 12-month view on government bonds to overweight.
