Goldman Sachs: Stock Market Rally May Slow Down, But Still Advises Buying on Dips

BlockBeats News, June 4th - Goldman Sachs stated that after a strong rebound, the expected stock market returns are likely to slow down. However, they are still maintaining an overweight position in stocks for the next 12 months and advising investors to buy on dips.

Goldman Sachs strategist Christian Mueller-Glissmann indicated that the market has rebounded close to its historical high, driven mainly by tech stock earnings and AI investments. Nevertheless, high yields and energy prices, coupled with overheated market sentiment, have increased the risk of a market pullback.

Despite the rising volatility risk, Goldman Sachs believes that the macroeconomic backdrop remains supportive. Reasons for this include ongoing corporate earnings growth and the continuation of AI-driven capital expenditures.