Goldman Sachs sees more stock market losses before strong recovery

Global equities will likely post a drop of between 20% and 25% from their peak before rebounding, the strategists said

Goldman Sachs Group strategists expect stocks to stage a powerful recovery from their worst sell-off since the 2008 financial crisis, but only after suffering more declines first.

Global equities will likely post a drop of between 20 per cent and 25 per cent from their peak before rebounding, the strategists said. The MSCI All-Country World Index has so far slumped 18 per cent from its February record high through yesterday as fears about the damage from coronavirus and oil price war sent investors rushing out of risk assets.

“At this stage, we think the balance is still more in favour of this