Goldman Strategists Say High Valuations Put Equities at Risk

Equities are trading at lofty premiums, putting stocks at risk in the event that concerns over economic growth increase, according to Goldman Sachs Group Inc. strategists.

This looms as a threat for later in the year in particular, should the rally powered by enthusiasm over artificial intelligence run into worries about a downturn in the US, the team led by Christian Mueller-Glissmann wrote in a note.

“The macro backdrop might turn less friendly in the second half,” the strategists wrote. “Rising US recession risk would increase the likelihood of a deeper bear market, also considering elevated valuations.”

The S&P 500 ...