Goldman and BlackRock Sour on Stocks as Recession Risk Rises
- BlackRock says ‘shun most stocks’ as recession not priced yet
- Goldman downgrades global shares to underweight over 3 months
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Goldman Sachs Group Inc. and BlackRock Inc. are turning more bearish on equities for the short term, warning that markets are yet to price in the risk of a global recession.
Flagging rising real yields as a major headwind, Goldman strategists cut equities to underweight in the US investment bank’s global allocation over the next three months while staying overweight cash. BlackRock is advising investors to “shun most stocks,” adding that it is tactically underweight developed-market shares and prefers credit in the short term.