Goldman Sachs: Recent pullback in risk assets is a buying opportunity, not the start of a long-term bear market

BlockBeats News, March 5 — According to Wall Street Journal, amid global market turbulence, Goldman Sachs is bullish against the trend, believing that recent market pullbacks are buying opportunities rather than the start of a long-term bear market. This optimism is based on the institution’s positive outlook for the “recovery” of circulation around the Strait of Hormuz.

Led by Peter Oppenheimer, Goldman Sachs’ strategy team wrote in a report on Wednesday that despite significant resistance from risks such as the Middle East conflict and disruptive impacts of AI, the resilience of economic fundamentals and strong corporate earnings growth suggest that the depth and duration of this correction will be limited.

Goldman Sachs’ optimism about the global markets largely hinges on expectations that the energy supply chain will recover quickly. Goldman’s chief oil strategist Daan Struyven predicts that the blocked oil transportation through the Strait of Hormuz will remain at very low levels for the next five days, then recover to 70% of normal capacity within two weeks, and reach full normalization at 100% in about four weeks.