Goldman Sachs Sees Shock Potential for U.S., European Stocks
- Stoxx 600, S&P 500 forecast to drop 2% through year-end
- U.S. election, Fed rate decision potential upsets to come
Making the Case for Buying European Bank Stocks
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U.S. and European equities are in for a bumpy ride into the end of the year.
That’s the message from Goldman Sachs Group Inc., which says that political risks, exacerbated by a weak economy in Europe and high stock prices in the U.S., make those markets vulnerable to declines in the next three months. The firm projects that the S&P 500 Index and the Stoxx Europe 600 Index will each drop by about 2 percent by December.