Inflationary Tax Hikes Loom Over UK Stocks, Goldman Sachs Says

Inflationary tax hikes and rising yields are the key risks facing UK domestic stocks, real estate and homebuilders, according to Goldman Sachs strategists.

• The team led by Sharon Bell says bond market is key to sector performance
  • Rate-sensitive sectors such as real estate and homebuilders should benefit most if budget lowers fiscal risk and is seen as non-inflationary
• Goldman Sachs economists expect the government to deliver around £30b of fiscal measures in the budget; adjustment likely to come on tax side including an extension of tax threshold freezes, new gambling taxes, tax avoidance measures, as well as changes in pensions ...