Investors have significant equity positions relative to the long-term average, suggesting a sell-off in 2023even though hedge funds and small investors reduced their equity exposure in this year’s selloff, believes the American strategist of Goldman Sachs.
US household demand for stocks, which has been the largest source of demand for stocks since 2020, turned slightly negative in the second quarter, reports Bloomberg. The sales of foreign investors are driven by the fact that the valuation of American stocks is high and the economy is slowing down.
Goldman Sachs last week cut its target for the S&P 500 index to 3,600 points and recommends underweight US stocks, joining those who say downside risks are intensifying due to rising real yields and the recession. Next year, the majority of demand for the American stock market will be provided by companies amid own share purchases and weak issuance activity, according to Goldman. He sees about $500 billion in stock purchase potential in the corporate sector, but pension funds can also buy about $200 billion next year.
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Source: Portfolio.hu – Üzlet by www.portfolio.hu.
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