Goldman Sachs strategists: U.S. stocks may continue to underperform

ChainCatcher message, Goldman Sachs strategist Oppenheimer stated that European and other overseas stock markets may continue to outperform the U.S. stock market, and they reiterated their recommendation to diversify investments into assets outside the U.S. The average correlation between stock markets in different countries has fallen to its lowest level since the 1990s. However, they noted that any further downward revision of U.S. economic growth expectations could also hurt overseas stock markets.

If the main reason for a further pullback in U.S. stocks is concerns about economic growth, rather than the dominant tech stocks, then historical performance shows that other markets are likely to decline as well.