Goldman Sachs analysts in a note on Monday forecast the bear market to continue into 2023, with a recent rally for equities expected to end.
The bear market is not over, in our view, wrote strategists Peter Oppenheimer and Sharon Bell, who noted the recent rebound is not the first we have seen in this bear market.
News that inflation appeared to begin easing sent stocks higher, with the Dow Jones jumping more than 1,000 points and the S&P gaining 5%.
The Federal Reserve has aggressively raised interest rates this year to combat inflation, pushing them this month to a range of 3.75% to 4%, and indicating more hikes to follow.
“The speed of the rise in interest rates (rather than their absolute level) has the potential to do more damage the Goldman Sachs strategists wrote.
