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David Kostin, Goldman Sachs’ chief equity strategist, warned investors on Tuesday that the recent stock market rally is losing touch with reality since the coronavirus outbreak is likely to have a prolonged negative impact on the US and global economy. 

“Risk to the downside is greater than the opportunity to the upside from this point where we stand today,” Kostin told CNBC. 

The S&P 500 rose 7.2% on Monday and the Dow Jones Industrial Average gained 7.8% or 1,600 points alongside a 7.3% rise in the tech-heavy Nasdaq index. The rally was likely fueled by data, which showed the rise in the number of coronavirus cases in some of the worst-hit countries slowed over the weekend. 

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I would just remind you that in 2008 in the fourth quarter there were many different rallies…but the market did not bottom until March of 2009,