Bear market to continue into 2023, say Goldman Sachs strategists

Goldman's strategists said the gains aren't sustainable, because stocks don't typically recover from troughs until the rate of deterioration in economic and earnings growth slows down

Equity investors hoping for a better year in 2023 will be disappointed, according to Goldman Sachs Group strategists, who said the bear market phase is not over yet.

“The conditions that are typically consistent with an equity trough have not yet been reached,” strategists including Peter Oppenheimer and Sharon Bell wrote in a note on Monday. They said that a peak in interest rates and lower valuations reflecting recession are necessary before any sustained stock-market recovery can happen.

The strategists estimate the S&P 500 will end 2023 at 4,000 index points -- just 0.9 per cent higher than Friday’s close