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According to analysts at the investment banking giant Goldman Sachs, the US equity markets look vulnerable to a pullback, with positioning looking
“extremely” stretched following the recent rally to an all-time high. 

While that may hamper short-term gains, analysts foresee a significant rally in 2021 courtesy of prospects of a swift global economic recovery on potential coronavirus vaccines. 

Key points/quotes (Source: Bloomberg)

The broker is sticking to its end-2021 forecast of 4,300 for the S&P 500, implying a 16% upside from Monday’s close.

From a flow of funds perspective, we expect investors will continue to shift assets away from money market funds and towards equities. 

While the stock market has climbed to an all-time high and equity allocations are elevated, yields on cash remain near zero.