With that said, it's important to note that disagreement is not overwhelming and likely temporarily. The majority, avid followers of investment houses despite their poor track record, remains surprisingly pessimistic towards stocks despite the rally. Rising pessimism is hardly the backdrop of major stock market tops. While smart money sees recent trading action as cause (building), they also understand an upside breakout to a June high is still possible.
Headline: Goldman Sachs downgrades stocks
Goldman Sachs’ portfolio strategy team has cut its outlook on the stock market for the next quarter.
In a note to clients published late Tuesday, Goldman’s team led by by Christian Mueller-Glissmann took its view on stocks to “Neutral” from “Overweight” for the next three months.
The team remains “Overweight” stocks over the next year and sees a 5% total return.
“We think equity drawdown risk in the coming months will depend on the interplay of the cycle and rates,” Goldman writes.
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