Goldman Sees High Risk of Stock Market Correction on Virus Complacency
- U.S., European stock gauges have hit record highs in February
- Oppenheimer: Correction in stocks won’t turn into bear market
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Investors may be underestimating the negative impact of the coronavirus on corporate earnings, which poses a threat to the stock market rally, according to Goldman Sachs Group Inc.’s chief equity strategist.
While coronavirus fears triggered a worldwide sell-off in January, the losses proved short-lived. Global equities are trading near record highs on optimism that the impact from the epidemic will be limited and China will step up support for its economy. Goldman’s Peter Oppenheimer cautions against complacency.