Goldman Sachs strategist: It's unlikely that US stocks will enter a bear market in the next year

Goldman Sachs Group strategists say that it is unlikely for U.S. stocks to enter a bear market in the next 12 months, as economic recovery will continue to support the stock market. The team led by Andrea Ferrario believes that even considering the risks brought by the presidential election, there is only an 18% chance of the stock market falling more than 20%. After soaring nearly 25% in 2023, the S&P 500 index has risen about another 20% this year, with large-cap tech stocks leading the way. Despite bond yields rising this month due to doubts about the depth and breadth of Fed's easing cycle and uncertainty over elections, evidence of US economic recovery has sustained momentum. Strategists wrote in their report: "The stock market should be able to digest higher bond yields as long as they are driven by better economic growth." They said that despite recent signs of weakness, overall economic conditions remain favorable.