U.S. stocks have 'limited upside' from here, says Goldman Sachs Asset Management

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U.S. stocks have 'limited upside' from here and investors should be looking for better opportunities elsewhere, according to Goldman Sachs Asset Management.

"We do tend to think that U.S. equities right now are fairly valued but there's limited upside at these valuations," James Ashley, head of international market strategy at Goldman Sachs Asset Management, told CNBC on Wednesday.

"The Fed only began to hike in March of '22, so when we're talking about recession risks in 2023, that would have assumed a very rapid passthrough from the transmission of monetary policy into the real economy. In other words, it was premature," Ashley said. "We do tend to think that U.S. equities right now are fairly valued but there's limited upside at these valuations. The better opportunities might be in other markets," he concluded.Where emerging markets are concerned, the Wall Street giant's asset management arm sees India as a "strategic long-term growth story," Ashley said.

 

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