GoldmanThe chief global equity strategist said that investors who hope to get huge returns from the financial market this year will have to lower their expectations.
Before the stock market rebounded in early 2019, the market sentiment in the last three months of last year was once sluggish.
At the end of 2018, global trade tensions, UK Brexit uncertainty and growing concerns about global economic growth prompted the US stock market to perform its worst performance since the Great Depression in December.
However, since the beginning of 2019, the improvement in market sentiment has helped the Dow Jones Industrial Average to rise more than 7%, and the Pan-European Stoxx 600 Index has risen by more than 6%.
“European stock markets have been rising this year, just like most other stock markets.” Peter Oppenheimer of Goldman Sachs told CNBC last Friday. "But fundamentally, we do believe that this year's profit growth will be quite weak."
He added, "It's worth noting that we expect profit growth in all major regions to be quite weak this year... that's why we think the market will show a narrow and stable situation in a reasonably narrow trading range. A relatively low return is achieved."
* "Moderate profit growth"*
Earlier this year, Goldman Sachs economists believed that financial markets overestimated the risk of a global recession.
Oppenheimer said that as a result, the valuation fell too much.
This US investmentbankIt is also expected that as inflation risks begin to slow down in the weeks leading up to 2019, market participants will need to ensure that they have invested in stocks to avoid missing potential returns.
When asked if investors have seen most, if not all, of the stock market's gains this year, Oppenheimer replied: "To a large extent, I think so."
Oppenheimer said, "With the relatively moderate growth of profitable growth, we will see a slight increase in price returns."
As he made the above remarks, concerns about the global economic slowdown have intensified.
At the same time, the European Commission (European Commission) on Thursday significantly cut its expectations for economic growth in the euro zone in 2019 and 2020. The news has heightened concerns that the global recession is spreading to Europe.
(Article source: Youcai)