11 Oct 2021
Goldman Sachs, JPMorgan Advise to buy into the Dip
The Index Today
Wall Street’s top banks are saying it may be a good time to buy the dip as slow economic growth will increase in the near future.
David J. Kostin from Goldman Sachs Group wrote, “Despite near-term uncertainty, we expect the equity market will continue to rally as investor gain confidence that the current pace of inflation is transitory.” The period of stagnation is expected to slow down and will ease fears according to strategists at JPMorgan Chase & Co.
The S&P Index fell 5% after its disappointing record in September and panic over inflation and prices. Supply bottlenecks and China’s property Recession have created doubts among investors regarding stock valuations and if they can be increased or not. Investors are fearing that the post-pandemic boom might slowly be coming to end and has already passed its peak period.
A recent survey conducted of professionals revealed that many think a 5% pullback may occur by the end of the year. On the other hand, Goldman Sachs and JPMorgan voiced their disagreement saying, “We believe this dip will prove a good buying opportunity, as 5% pullbacks usually have in the past. We finally got some weakness after 330 days of no greater than 5% pullbacks, but we don’t expect it to last, and advise to buy into the dip.”