Goldman Sachs Group Inc. strategists have shifted to a positive outlook on global stocks for the short term, driven by stronger-than-expected earnings. The team, led by Christian Mueller-Glissmann, highlighted that equity prices have become less demanding after recent rises in oil prices and bond yields temporarily slowed market gains.
The strategists upgraded their three-month view on stocks to overweight from neutral, aligning it with their bullish stance for the next 12 months. Despite near all-time highs, they emphasized that the profit outlook remains robust, supporting further market growth.
The note suggests that while higher oil prices and bond yields have created some headwinds, the underlying fundamentals of corporate earnings continue to provide strong support for equities.