Goldman Sachs: Global Stock Markets May Experience Short-term Pullback, but Probability of Full Bear Market is Low

Odaily News Goldman Sachs equity strategists stated in a report that as tensions in the Middle East escalate and investors reassess risks related to artificial intelligence capital expenditures, global stock markets face the possibility of a pullback in the short term, but the probability of a full bear market remains low. Strategists pointed out that current valuations are at relatively high levels, making the market more vulnerable to pullback shocks. However, if an adjustment occurs, it could also present buying opportunities, while the risk of a deeper decline is limited. Strong economic growth, robust corporate earnings, and healthy private sector balance sheets should help buffer systemic risks. Goldman Sachs stated: "We still recommend diversifying across a broad range of geographies, factors, and sectors to enhance risk-adjusted returns." (Jin10)