Goldman upgrades global equities on earnings optimism
GS•Goldman Sachs upgraded its three-month view on global equities to overweight from neutral, citing supportive earnings growth and more attractive valuations ahead of earnings season.
1. Equity outlook upgraded
Goldman Sachs upgraded its three-month view on global equities to overweight from neutral, saying the recent pullback has created a more attractive entry point ahead of third-quarter earnings. The move brings its three-month outlook in line with its bullish 12-month stance.
2. Regional views and risks
The bank remains overweight on Asia and the United States and underweight on Europe. It cited higher interest rates and energy prices as the main near-term risks, and said uncertainty around U.S. midterm elections could increase market volatility.
3. Bond outlook raised
Goldman favors a barbell strategy combining technology stocks with bond-like equities. It also upgraded its 12-month view on government bonds to overweight, saying bonds should gradually move from a portfolio headwind to a hedge.
