Goldman Sachs told clients
the market will be volatile the rest of the year, but there are still
investment strategies that can outperform in the uncertainty.
The firm's year-end S&P
500 target is 2,100, representing less than 1 percent upside from Tuesday's
close. However, there is downside risk of 5 to 10 percent in the short term due
to geopolitical events, according to Goldman's chief U.S. equity strategist,
David Kostin.
"The coming months will
see a continuation of the recent slow growth, low interest rate environment
along with a rise in uncertainty stemming from Brexit and the November
elections," Kostin wrote in a note to clients Tuesday. "In this
environment, defensive strategies focused on income, risk-adjusted returns and
U.S. relative strength should outperform."
Credit:CNBC
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