Goldman Sachs: US Stocks May Drop About 20% Due to "Recession Risk"

According to a report by Jinse Finance, Goldman Sachs stated that the U.S. stock market faces a risk of nearly 20% decline, with recession posing a significant risk to the stock market. In a podcast on Thursday, Goldman Sachs' Chief Economist Jan Hatzius and Chief Global Equity Strategist Peter Oppenheimer appeared particularly cautious. Hatzius reiterated the expectation that "the probability of a U.S. economic recession in the next 12 months is 45%," acknowledging that recent data has been mixed, with weak soft data such as sentiment surveys and better hard data like the latest non-farm employment figures. Goldman Sachs' Chief Political Economist Alec Phillips warned that comments by the U.S. President regarding the trade agreement with the UK suggest that many countries will ultimately face higher tariffs than before Trump's re-election.