Signs of caution abound, even as United States stocks hover near record highs. Goldman Sachs economists recently lowered their tracking estimate of US economic growth in the third quarter to 5.5% from 9% due to the impact of the delta variant.
NEW YORK: Investors are preparing for a rockier ride ahead for markets, as worries over slowing growth, a looming rollback of the Federal Reserve’s (Fed) easy money policies and a global Covid-19 resurgence threaten a rally that has seen the S&P 500 double from last year’s lows.
Signs of caution abound, even as United States stocks hover near record highs. Goldman Sachs economists recently lowered their tracking estimate of US economic growth in the third quarter to 5.5% from 9% due to the impact of the delta variant, while fund managers surveyed by Bank of America (BofA) Global Research said they boosted cash overweights to the highest level since October 2020 while adding to positions in defensive sectors such as healthcare and utilities.
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