Goldman Sachs just a little wary over some of the weaker economic data.

Says a US recession is not priced in

  • and there are signs of a slowdown in Europe and China
  • add the recent softening in the US labor market

But, says GS, equity markets are still positioned optimistically:

  • cyclical stocks have underperformed during the correction
  • US equity market does not appear to be pricing a recession
goldman sachs yellow