Goldman Sachs Advises Clients to Hold Cash Near Term While Staying Bullish on Stocks

According to CNBC, Goldman Sachs strategist Christian Mueller-Glissmann recommended that investors stay overweight stocks over the next three and 12 months, citing strong corporate earnings and stable interest rates, while remaining overweight cash over the next three months. He said artificial intelligence concerns, the midterm elections and Middle East tensions could increase volatility, with bonds offering a limited buffer. The S&P 500 fell 2.4% over the past month, while Nvidia, Meta Platforms and Alphabet each declined more than 10%. The Roundhill Memory ETF (DRAM) dropped 25% over the same period, and the Nasdaq-100 entered correction territory, falling more than 10% from its record closing high set Oct. 6. The index fell 3.5% on Friday, its biggest one-day decline since June 5. Mueller-Glissmann said easing AI concerns, lower rates and a further decline in Goldman Sachs’ risk appetite indicator could support a stronger appetite for risk. The indicator fell to -0.5 on Friday.