For almost a year now, many analysts and investors have been saying that the market is overvalued and that a correction is needed. Indeed, the major indexes have been setting new records constantly while many point out that the underlying evaluations do not warrant the highs. So why no correction?
“There’s little chance of a stock market slide anytime soon essentially because investors are so worried that one might be coming,” according to a Goldman Sachs analysis. Via cnbc.com
Goldman’s Chief U.S. equity strategist, David Kostin says that “investors today are situated between scepticism and optimism,” which is contributing to the lack of a correction. People are cagey about any growth because they have all realised that the market is potentially overvalued. However, the market is also aware so it will not budge.
To get a better understanding of Goldman Sachs’ position, read more at cnbc.com.
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