jeopardyfan| Goldman Sachs recommends holding stocks, saying upside is more likely than downside

Goldman Sachs said the high valuation of the US stock market shows that investor enthusiasm has been largely reflected in the market, but that does not meanJeopardyfanThey should sell.

The S & P; is already above Goldman's year-end target of 5200, but the fundamental background is still "very good", Ben Snider, a senior strategist in Goldman's US portfolio strategy team, said in an interview. He is optimistic about the future of the stock market because of strong US corporate profits and confidence in falling inflation.

"We still believe that the current upside risk is greater than the downside risk," Snider said. He also stressed that while he and David Kostin, chief U.S. equity strategist at Goldman Sachs, both believe there will be little gain in 2024, they are long-term bullish. "if you own the stock now, we won't tell you that you should sell it."

The US stock market is at a critical juncture and traders are looking for the next catalyst. One of them could come as early as Wednesday, when the US government will release the latest consumer price index. The options market shows that traders expect the stock market to rise or fall by nearly 1% on the day.