Goldman unpacks the 'Goldilocks' scenario that will spark fresh gains for both stocks and bonds
NYSE Goldman Sachs sees the golden 'Goldilocks' backdrop ahead in markets. That refers to an ideal scenario for investors where economic growth is neither too hot or too cold. Strategists see both stocks and bonds outperforming in the coming months. The stock market's best-case scenario could be brewing, Goldman Sachs says. Strategists at the Wall Street bank are eyeing a Goldilocks situation for markets, a dream configuration where economic growth is neither too hot nor too cold. The idea is that the economy is growing at just the right pace to fuel investor optimism while keeping a lid on inflation. It's a setup that looks poised to spark a fresh rally in stocks as well as bonds in the coming months, the bank wrote in a note to clients on Monday. Goldman said it's shifted back to an overweight stance on stocks for the next three months and to an overweight stance on bonds over the next 12 months, citing a strong backdrop for economic growth and cooling inflatio...