Goldman Strategists Encourage Market Players to Take Advantage of Dip in Stocks

Source: Bloomberg

Market players should take advantage of the dip in equities and continue to accumulate holdings, according to Goldman Sachs strategists to UBS Global Wealth Management.

• Strategists led by Cecilia Mariotti believe the selloff in stocks in a number of firms may be overdone soon, with yields unlikely to move higher.
• Valuations are not expected to become a “binding constraint” for stocks, the strategists wrote in a note.
• Gains were recorded in US stock market futures and European benchmarks on Tuesday, indicating a possible easing of the selloff.
• UBS Chief Investment Officer Mark Haefele said investors should prop themselves against volatility, following the hawkish remarks of the Federal Reserve.
• Haefele said the easing of policy tools are should not be a factor in the corporate earnings outlook, citing consumer spending and access to capital.
• Analysts believe that ta hawkish Fed will not have any fundamental changes on the positive outlook in equities.