(Bloomberg) — Markets have grown more pessimistic about the outlook for US economic growth, and if that continues in a substantial way it may offer a chance to buy stocks, according to Goldman Sachs Group Inc.
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The under-performance of cyclical equities this month signals concern that the recent tightening of financial conditions will stymie economic growth, Goldman strategists led by David Kostin wrote in a note Friday. At the same time, since the firm’s view is that the US economy will remain relatively resilient, companies in sectors like financial services, semiconductors and materials may still fare relatively well.
“Although we expect headwinds to discount rates and balance sheets to persist, we would view a substantial further downgrade to the growth outlook as a buying opportunity,” the strategists wrote.
This comes after the 10-year Treasury yield…
