A very interesting read here in regards to Goldman Sachs telling its clients this bull market is headed higher. Also interesting is the mentioning of the old “buy and hold” strategy outperforming “selling solely based on expensive valuation.” For myself, I do not think Tesla is expensive, but for folks on the sidelines, this may convince you to get back in. The buy and hold strategy, even with negative forecasts out performs in a variety of markets that includes US, Europe, Japan, etc.
What Goldman Sachs is telling high net worth clients about the stock market
Here’s a summary straight from the article:
Goldman also argues that bull markets don’t die from old age but from recessions. Presently, there’s a low probability of a U.S. recession, which is one of the key drivers of the market right now.
Goldman Sachs’ model currently places the probability of a recession in the U.S. over the next two years at 17.6%. For 2018, the likelihood is 10%.
“When the probability of a recession is low, the likelihood of positive returns is very high,” Goldman Sachs wrote.
