(Kitco News) Despite a positive start to the fourth quarter, households could sell $100 billion worth of equities next year, according to Goldman Sachs.
“Rising rates are causing a shift in investor mindsets from TINA (`There Is No Alternative’) to TARA (`There Are Reasonable Alternatives’), indicating a weakening outlook for equity demand going forward,” Goldman’s head of U.S. equity strategy David Kostin said in a note. “We expect households to sell $100 billion in equities in 2023.”
Higher interest rates coupled with slower economic growth will deepen the selloff in U.S. stocks, the note said. Goldman sees GDP growth slowing from 1.6% in 2022 to 0.9% in 2023, and the unemployment rate rising from 3.6% to 4%.
Views: