Goldman Sachs Warns of 20% Market Sell-Off: Are They Right?

From Investing.com: 2025-05-13 13:35:00

The stock market has made a 20% recovery since “Liberation Day” but some experts predict a short-lived rally due to potential risks. Goldman Sachs warns of a possible 20% decline in the S&P 500 and a 45% chance of a US recession. Economic headwinds from tariffs could lead to a decline in earnings per share and threaten market valuations. Investors are moving towards safer assets like gold and defensive sector funds, as the market shows signs of exiting riskier assets. Warren Buffett’s “Buffett Indicator” suggests overvaluation in the US market, leading him to hold record amounts of cash.



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