21 June 2023
Goldman Sachs suggests hedging S&P 500 rally amid recession risks. Narrow rally, high valuations, and overly optimistic growth expectations prompt caution. Options market can hedge potential 23% downside in recession scenario. Chance of recession over next 12 months estimated at one in four. Despite warnings, Goldman’s base case is for S&P 500 to reach 4,500 by year-end.